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

• Sales are budgeted at $306,000 for November, $326,000 for December, and $226,000 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 $22,700.
• Monthly depreciation is $29,000.
• 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 $ 34,500 85,000 183,600 921,000 $ 1,224,100 $ 255,000 756,000 213,100 $ 1,224,100 The difference between cash receipts and cash disbursements for December would be: $55,800 $21,300 $73,025 $30,425