TB MC Qu. 8-122 Dilly Farm Supply is located in a small ... Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: . Sales are budgeted at $307,000 for November, $327,000 for December, and $227.000 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 75% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 90% 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 $22,800 Monthly depreciation is $29.500. Ignore taxes. . . . Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 35,000 85,500 290,400 922,000 $1,332,900 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 256,000 757,000 319,900 $1,332,988 Total assets 7 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 256, 757, 319, $1,332, 00:45:29 Expected cash collections in December are Multiple Choice O $319,000 $196,200 $327,000 $122,800