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		182,900
Property, plant and equipment, net of $624,000 accumulated depreciation		1,007,000
Total assets	$	1,294,900
Liabilities and Stockholders' Equity
Accounts payable	$	239,000
Common stock		743,000
Retained earnings		312,900
Total liabilities and stockholders' equity	$	1,294,900

Retained earnings at the end of December would be:

Multiple Choice

$323,900

$312,900

$346,300

$356,700