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

• Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 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 $21,100.
• Monthly depreciation is $21,000.
• Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 25,000
Accounts receivable	77,000
Merchandise inventory	162,400
Property, plant and equipment, net of $624,000 accumulated depreciation	1,026,000
Total assets	$ 1,290,400
Liabilities and Stockholders' Equity
Accounts payable	$ 239,000
Common stock	740,000
Retained earnings	311,400
Total liabilities and stockholders' equity	$ 1,290,400

Expected cash collections in December are: