Dilly Farm Supply Is Located in a Small Town in the Rural

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:Sales are budgeted at $297,000 for November, $317,000 for December, and $217,000 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 $21,800.Monthly depreciation is $24,500.Ignore taxes. Expected cash collections in December are:

A) $317,000
B) $89,100
C) $311,000
D) $221,900