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: