Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:Sales are budgeted at $303,000 for November, $323,000 for December, and $223,000 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 $22,400.Monthly depreciation is $27,500.Ignore taxes. Balance SheetOctober 31Assets Cash $ 33,000Accounts receivable 83,500Merchandise inventory 181,800Property, plant and equipment, net of $624,000 accumulated depreciation 918,000Total assets $ 1,216,300Liabilities and Stockholders' Equity Accounts payable $ 252,000Common stock 753,000Retained earnings 211,300Total liabilities and stockholders' equity $ 1,216,300The cost of December merchandise purchases would be: .