UNIC CIPUTU WEUCH U yourse Up Uw you wees op www. Help Save & Exl Sales are budgeted at $210,000 for November, $190,000 for December, and $180,000 for January Collections are expected to be 50% in the month of sale and 50% in the month following the sale. The cost of goods sold is 55% of sales. The company would like to maintain ending merchandise inventories equal to 45% 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 $22,700. Monthly depreciation is $13,700. Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $574,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 22,500 72,500 51,975 1,696,500 $1,243,475 $ 256,500 822,500 164,475 $1,243,475 Expected cash collections in December are