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 $309,000 for November. $329,000 for December, and $229,000 for January . Collections are expected to be 70% in the month of sale and 30% 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 80% 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 $23,000. Monthly depreciation is $30,500. . Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory $ 36,000 86,500 291,400 Saved $ Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 36,000 86,500 291,400 924,000 $1,337,900 Liabilities and stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 258,000 759,000 320,900 $1,337, 900 w Expected cash collections in December are: $230,300 $323,000 O $329,000 $92,700