Sales are budgeted at $299,000 for November, $319,000 for December, and $219,000 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, sites 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 $22,000, Monthly depreciation is $25,500 Ignore taxes. $ Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 32,500 81,500 185,900 1,013,000 $1,312,900 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 248,000 749,000 315,900 $1,312,900 Q) What are the expected cash collections fo December? Sales are budgeted at $299,000 for November, $319,000 for December, and $219,000 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, sites 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 $22,000, Monthly depreciation is $25,500 Ignore taxes. $ Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 32,500 81,500 185,900 1,013,000 $1,312,900 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 248,000 749,000 315,900 $1,312,900 Q) What are the expected cash collections fo December