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

  

•	Sales are budgeted at $420,000 for November, $440,000 for December, and $430,000 for January.
•	Collections are expected to be 55% in the month of sale, 42% in the month following the sale, and 3% uncollectible.
•	The cost of goods sold is 70% of sales.
•	The company would like to maintain ending merchandise inventories equal to 60% 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 $23,900.
•	Monthly depreciation is $21,800.
•	Ignore taxes.

  
December cash disbursements for merchandise purchases would be:

	$303,800
→	$302,400
	$308,000

December merchandise purchases:

	November	December
Sales	$420,000	$440,000
Cost of goods sold (70% of sales)	$294,000	$308,000
Add desired ending merchandise inventory      (60% of next month's COGS)	184,800
Total needs	478,800
Less beginning merchandise inventory      (60% of this month's COGS)	176,400
Required purchases	$302,400

  
In December, the company will pay for November's purchases of $302,400.