Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January - Collections are expected to be 65% in the month of sale, 33% in the month following the sale, and 2% uncollectible. - The cost of goods sold is 80% of sales. - The company purchases 70% of its merchandise in the month prior to the month of sale and 30% in the month of sale. Payment for merchandise is made in the month following the purchase. - Other monthly expenses to be paid in cash are $21.100. - Monthly depreciation is $21,000. - Ignore taxes. $ 25,000 Statement of Financial Position October 31 Assets Cash Accounts receivable (net of allowance for uncollectible accounts) Inventory Property, plant and equipment (net of $624,000 accumulated depreciation) Total assets 77,000 162.400 1,026,000 $1.290400 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 239,000 740,000 311,400 $1.290400 Reference: 9-2 Expected cash collections in December are: $310,000 $95,700 $297,200 $201,500