Dilly Farm Supply is located in a small town in the rural west. Data regarding the stores operations follow Sales are budgeted at $291.000 for November $311.000 for December, and $211.000 for January Collections are expected to be 70% in the month of sale and 30% 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 80% 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 $21,200. Monthly depreciation is $21.500. Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of 5624,000 accumulated depreciation Total assets $ 25,500 77,500 162,90e 1,027,000 $1,292,900 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 240, eee 741, eee 311,900 $1,292,989 Expected cash collections in December are: Multiple Choice $311,000 587300 $305.000 $212700