Quiz 3 (Chapters 7,8,8.10) Saved Help Save & Exit Submit Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: 10 8 00:21:41 Sales are budgeted at $251.000 for November, $291,000 for December, and $218.000 for January Collections are expected to be 60% in the month of sale and 40% 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 90% 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 $20,000 Monthly depreciation is $25,000 Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,eee accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 26, eee 81,080 169,425 946.ee , $ 1,222,425 $ 247,000 748, eee 227,425 $ 1.222,425 The cost of December merchandise purchases would be: Multiple Choice O $147150 O O $168.975 $199.250 $219,250