Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $248,000 for November, $288,000 for December, and $220,000 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 70% 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 $17,500. Monthly depreciation is $20,000 . Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,ooe accumulated depreciation Total assets $20,000 79,500 976,000 $1,205,700 Total assets Liabilities and Stockholders Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 244,000 745,000 216,700 $1,205,700 Retained earnings at the end of December would be: