Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $302,000 for November, $322,000 for December, and $222,000 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 $22,300 Monthly depreciation is $27,000 .Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets $ 32,500 83,000 169,120 917,000 $1,201,620 Liabilities and Stockholders Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity ? 251,000 752,000 198,620 $1,201,620 Retained earnings at the end of December would be