Help Seve Dilly Farm Supply is located in a small town in the rural west Data regarding the store's operations follow Sales are budgeted at $309,000 for November, $329,000 for December, and $229,000 for January Collections are expected to be 70% in the month of sale and 30% in the month following the sale. The cost of goods sold is 75% of sales The company desires to have an ending merchandise inventory at the end of each month equal to 80% 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 $23.000. Monthly depreciation is $30,500 Ignore taxes Assets Cash Accounts receivable. Merchandise inventory Balance Sheet October 31 Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and stockholders' Equity Accounts payable. Common stock Retained earnings Total liabilities and stockholders' equity The cost of December merchandise purchases would be $ 36,000 86,500 185,400 924,000 $1,231,000 $250,000 759,000 214,900 $1,211,900