Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: - Sales are budgeted at $308,000 for November, $328,000 for December, and $228,000 for January. - Collections are expected to be 65% in the month of sale and 35% 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 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 $22,900. - Monthly depreciation is $30,000. - Ignore taxes. The cost of December merchandise purchases would be: Multiple Choice $262,400 $206,400 $127,680 $246,400