Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: ? Sales are budgeted at $200,000 for November, $220,000 for December, and $210,000 for January. ? Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. ? The cost of goods sold is 62% of sales. ? The company desires to have an ending merchandise inventory at the end of each month equal to 50% 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 $22,500. ? Monthly depreciation is $19,000. ? Ignore taxes. Statement of Financial Position October 31 Assets Cash $ 16,000 Accounts receivable (net of allowance for uncollectible accounts) 76,000 Merchandise inventory 71,500 Property, plant & equipment (net of $536,000 accumulated depreciation) 956,000 Total assets $1,119,500 Liabilities & Stockholders