please explain

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $310,000 for November, $290,000 for December, and $280,000 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 65% of sales. . The company would like to maintain ending merchandise inventories equal to 55% 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 $23,700. Monthly depreciation is $14,700. . Ignore taxes.. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,500 accumulated depreciat Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The difference between cash receipts and cash disbursements for December would be: e Sheet ber 31 umulated depreciation $ 21,500 71,500 110,825 1,095,500 $ 1,299, 325 $ 255,500 821,500 222, 325 $ 1,299, 325 The difference between cash receipts and cash disbursements for December would be