Dily Farm Supply is located in a smal own in the rural west. Dota regarding the store's operations follow Sales are budgeted at $254,000 for November, $294000 for December, and $221000 for January Collections are expected to be 60% inthe month of sale and 40% in the month following the sale . . The cost of goods sold ts 80% of sales. . The company desires to have an ending merchandise inventory at the end of each month e ual to 90% of the next month's cost of goods sold Payment for merchandise the month following the purchase Other monthly expenses to be paid in cash are $15,600 made in Monthly depreclation ts $26,500 . ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Herchandise inventory Property, plant and equipment, net of $624,8e8 accunulated depreciation Total assets $ 32,000 82,500 182,888 916,880 $1,213,388 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total llabilities and stockholders equity $ 2se, eee 751,698 $1,213,388 Retalned earnings at the end of December would be Multiple Cholce $237,780 $212.380 $221180 $254.380