Dully Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow . Sales are budgeted at $251.000 for November, $291.000 for December, and $218,000 for January Collections are expected to be 60% in the month of sale and 40% 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 90% 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 $20.000 Monthly depreciation is $25,000 Ignore taxes . Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 26,000 81,000 169,425 946,000 $ 1,222,425 $ 247,000 748 , 227,425 $ 1,222,425 Retained earnings at the end of December would be: $251.925 O $227425 5272.925 O $272325