Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $304,000 for November, $324,000 for December, and $224,000 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 $22,500 Monthly depreciation is $28.000.- Ignore taxes. . . $ Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 33,500 84,000 288,900 919,000 $1,325,400 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 253,000 754, eee 318,400 $1,325,400 Expected cash collections in December are: Expected cash collections in December are: Multiple Choice O O $324,000 $121,600 O $316.000 $194.400