Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $440,000 for November, $420,000 for December, and $410,000 for January. Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company would like maintain ending merchandise inventories equal to 70% 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 $25,000. Monthly depreciation is $16,000. Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	21,000
Accounts receivable		71,000
Merchandise inventory		246,400
Property, plant and equipment, net of $573,000 accumulated depreciation		1,095,000
Total assets	$	1,433,400
Liabilities and Stockholders' Equity
Accounts payable	$	255,000
Common stock		821,000
Retained earnings		357,400
Total liabilities and stockholders' equity	$	1,433,400
The cost of December merchandise purchases would be: A. $352,000 B. $229,600 C. $330,400 D. $336,000