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

• Sales are budgeted at $307,000 for November, $327,000 for December, and $227,000 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 75% 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 in cash are $22,800.
• Monthly depreciation is $29,500.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	35,000
Accounts receivable		85,500
Merchandise inventory		207,225
Property, plant and equipment, net of $624,000 accumulated depreciation		922,000
Total assets	$	1,249,725
Liabilities and Stockholders' Equity
Accounts payable	$	256,000
Common stock		757,000
Retained earnings		236,725
Total liabilities and stockholders' equity	$	1,249,725

1. Retained earnings at the end of December would be: