Eastside Hardware is a retail hardware store. Information about the store$$s operations follows.

November $20$x$1$ sales amounted to $$560,000.$

Sales are budgeted at $$600,000$ for December $20$x$1$ and $$560,000$ for January $20$x$2.$

Collections are expected to be $60$ percent in the month of sale and $38$ percent in the month following the sale. Two percent of sales are expected to be uncollectible. Bad debts expense is recognized monthly.

The store$$s gross margin is $20$ percent of its sales revenue.

A total of $90$ percent of the merchandise for resale is purchased in the month prior to the month of sale, and $10$ percent is purchased in the month of sale. Payment for merchandise is made in the month following the purchase.

Other monthly expenses paid in cash amount to $$46,800.$

Annual depreciation is $$480,000.$

The company$$s balance sheet as of November $30,20$x$1,$ is as follows: