Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January. follow: (Questions 6-9) . 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 65% of sales. * The company desires to have an ending merchandise inventory at the end of each month equal to 50% purchase of the next month's cost of goods sold. Payment for merchandise is made in the month following the 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 Accounts receivable (net of allowance for uncollectible accounts) Merchandise inventory Property, plant and equipment (net of $536,000 accumulated depreciation).. 956,000 Total assets $16,000 76,000 71,500 $1,119,500 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $147,000 840,000 132.500 6. Expected cash collections in December are: a) $59,400 b) $140,000 c) $199,400 d) $200,000 7The cost of December merchandise purchases would be: a) $133,250 b) S68,250 c) $130,000 d) $143,000 8. December cash disbursements for merchandise purchases would be a) $136,500 b) $68,250 c) S133,250 d) $130,000