• Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January.
• Collections are expected to be 65% in the month of sale and 35% in the month following the sale.
• The cost of goods sold is 80% of sales.
• The company desires to have an ending merchandise inventory at the end of each month equal to 70% 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 $21,100.
• Monthly depreciation is $21,000.
• Ignore taxes.

1- The cash balance at the end of December would be:

a. $69,100,

b. $25,000,

c. $57,900,

d. $38,300,

2- Accounts payable at the end of December would be:

a. $192,000

b. $248,000

c. $117,600

d. $74,400

3- Retained earnings at the end of December would be:

a. $325,100

b. $311,400

c. $353,400

d. $347,200

$ Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 25,000 77,000 162,400 1,026,000 $ 1,290,400 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 239,000 740,000 311,400 $ 1,290,400