This problem is a 4 part problem. I know the right answers, but I don't know how to solve the question. Please show all work.

Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at S220,000 for November, S200,000 for December, and S210,000 for January. Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3 uncollectible. The cost of goods sold is 65% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. 1. Expected cash collections in December are: A. $59,400 B. $140,000 C. $199,400 C is the right answer D. $200,000 2. December cash disbursements for merchandise purchases would be A. $136,500 A is the right answer B. $68,250 C. $133,250 D. $130,000