Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $210,000 for November, $190,000 for December, and $180,000 for January. Collections are expected to be 50% in the month of sale and 50% in the month following the sale. The cost of goods sold is 55% of sales. The company would like maintain ending merchandise inventories equal to 45% 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 $22,700. Monthly depreciation is $13,700. Ignore taxes. Balance Sheet October 31 Assets Cash $ 22,500 Accounts receivable 72,500 Merchandise inventory 51,975 Property, plant and equipment, net of $574,500 accumulated depreciation 1,096,500 Total assets $ 1,243,475 Liabilities and Stockholders' Equity Accounts payable $ 256,500 Common stock 822,500 Retained earnings 164,475 Total liabilities and stockholders' equity $ 1,243,475 The cost of December merchandise purchases would be: