TB MC Qu. 8-119 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 $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	$	21,500
Accounts receivable		71,500
Merchandise inventory		110,825
Property, plant and equipment, net of $573,500 accumulated depreciation		1,095,500
Total assets	$	1,299,325
Liabilities and Stockholders' Equity
Accounts payable	$	255,500
Common stock		821,500
Retained earnings		222,325
Total liabilities and stockholders' equity	$	1,299,325

The cost of December merchandise purchases would be: