Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: ' Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for...

Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: ' Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January. ' Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. ' The cost of goods sold is 65% of sales. ' The company desires to have an ending merchandise inventory at the end of each month equal to 50% 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 $22,500. ' Monthly depreciation is $19,000. ' Ignore taxes. Expected cash collections in December are: A) $59,400 B) $140,000 C) $199,400 D) $200,000