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

• Sales are budgeted at $293,000 for November, $313,000 for December, and $213,000 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 $21,400.
• Monthly depreciation is $22,500.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	26,500
Accounts receivable		78,500
Merchandise inventory		164,080
Property, plant and equipment, net of $624,000 accumulated depreciation		1,007,000
Total assets	$	1,276,080
Liabilities and Stockholders' Equity
Accounts payable	$	239,000
Common stock		743,000
Retained earnings		294,080
Total liabilities and stockholders' equity	$	1,276,080

The difference between cash receipts and cash disbursements for December would be: