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

• Sales are budgeted at $303,000 for November, $323,000 for December, and $223,000 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 $22,400.
• Monthly depreciation is $27,500.
• Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 33,000
Accounts receivable	83,500
Merchandise inventory	288,400
Property, plant and equipment, net of $624,000 accumulated depreciation	918,000
Total assets	$ 1,322,900
Liabilities and Stockholders' Equity
Accounts payable	$ 252,000
Common stock	753,000
Retained earnings	317,900
Total liabilities and stockholders' equity	$ 1,322,900

Expected cash collections in December are: