Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $297,000 for November, $317,000 for December, and $217,000 for January. Collections are expected to be 70% in the month of sale and 30% in the month following the sale. The cost of goods sold is 75% of sales. . The company desires to have an ending merchandise inventory at the end of each month equal to 80% 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 $21,800. . Monthly depreciation is $24,500. . Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable. Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets. Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 28,500 80,500 178,200 1,011,000 $ 1,298,200 $ 243,000 747,000 308,200 $ 1,298,200 etained earnings Total liabilities and stockholders' equity Retained earnings at the end of December would be: 308,200 $ 1,298,200 Multiple Choice $308,200 $354,400 $369,100 $346,300