Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:

Sales are budgeted at $$305,000$ for November, $$325,000$ for December, and $$225,000$ for January.

Collections are expected to be $65\%$ in the month of sale and $35\%$ in the month following the sale.

The cost of goods sold is $80\%$ of sales.

The company desires to have an ending merchandise inventory at the end of each month equal to $70\%$ of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.

Other monthly expenses to be paid in cash are $$22,600.$

Monthly depreciation is $$28,500.$

Ignore taxes.

Balance Sheet

October $31$

Assets

Cash $ $34,000$

Accounts receivable $84,500$

Merchandise inventory $289,400$

Property, plant and equipment, net of $$624,000$ accumulated depreciation $920,000$

Total assets $ $1,327,900$

Liabilities and Stockholders' Equity

Accounts payable $ $254,000$

Common stock $755,000$

Retained earnings $318,900$

Total liabilities and stockholders' equity $ $1,327,900$

Expected cash collections in December are: