Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:
- Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January.
- Collections are expected to be 65% in the month of sale, 33% in the month following the sale, and 2% uncollectible.
- The cost of goods sold is 80% of sales.
- The company purchases 70% of its merchandise in the month prior to the month of sale and 30% in the month of sale. Payment for merchandise is made in the month following the purchase.
- Other monthly expenses to be paid in cash are $21,100.
- Monthly depreciation is $21,000.
- Ignore taxes
Statement of Financial Position
October 31
Assets:
Cash...........25,000
A/R
(net of allowance for uncollectible accounts)......77,000
Inventory.................162,400
Property, plant & Equip
(net of 624,000 Accum depr)..........1,026,000
Total Assests...........1,290,400
Liabilties & Stock Equity
A/P.................239,000
Common Stock...........740,000
Retained Earnings......311,400
Total Lib & Stock Equity.....1,290,400
what Retained earnings at the end of December would be: