Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $254.000 for November. $294.000 for December, and $221.000 for January Collections are expected to be 60% in the month of sale and 40% 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 90% 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 cash are $15.600. Monthly depreciation is $26.500. . Ignore taxes. S Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation 32,000 82,500 182,880 916,000 Total assets $1,213,380 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 250,000 751,000 212,380 $1,213,380 Retained earnings at the end of December would be: Multiple Choice O $221,180 $212.380 O $237,780 O O o $254,380