Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

  

•	Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 for January.
•	Collections are expected to be 55% in the month of sale, 44% in the month following the sale, and 1% uncollectible.
•	The cost of goods sold is 70% of sales.
•	The company would like to maintain ending merchandise inventories equal to 70% 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 $22,900.
•	Monthly depreciation is $20,800.
•	Ignore taxes.

  
Expected cash collections in December are:

→	$327,800
	$340,000
	$187,000

Cash collections for December:

December credit sales collected in December ($340,000 × 55%)	$187,000
November credit sales collected in December ($320,000 × 44%)	140,800
Total cash collections in December	$327,800