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The answer is D . Use the following to answer Q 7 3 to Q 8 1 :Dilbert Farm Supply is located in a small

The answer is D.Use the following to answer Q73 to Q81:Dilbert Farm Supply is located in a small town in the rural west. Data regarding thestore's operations follow (Ignore taxes): Sales are budgeted at $260,000 for November, $230,000 for December, and$210,000 for January. Collections are expected to be 80% in the month of sale, 19% in the monthfollowing the sale, and 1% uncollectible. The cost of goods sold is 65% of sales. The company purchases 60% of its merchandise in the month prior to the monthof sale and 40% in the month of sale. Payment for merchandise is made in themonth following the purchase. Other monthly expenses to be paid in cash are $20,300. Monthly depreciation is $20,000.Statement of Financial Position as at Oct 31Assets $Cash 27,000Accounts receivable (net of allowance for uncollectible accounts)79,000Inventory 101,400Property, plant & equipment (net of $574,000 accumulated depreciation)1,082,000Total assets 1,289,400Liabilities and Stockholders EquityAccounts payable 169,000Common stock 740,000Retained earnings 380,400Total liabilities and stockholders equity 1,289,400Q78The cash balance at the end of December would be:a) $27,000b) $82,800c) $153,500d) $180,500

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