TB MC Qu. 8-119 (Algo) Bramble Corporation is a small wholesaler... Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow. Sales are budgeted at $440,000 for November, $420,000 for December, and $410,000 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 would like to maintain ending merchandise inventories 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 $25,000 Monthly depreciation is $16,000 Ignore taxes . Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 21,000 71,000 246,400 1,095,000 $ 1,433,400 $ 255,000 821,000 357,400 $ 1,433,400 The cost of December merchandise purchases would be