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.
Balance Sheet October 31
Assets
Cash $25,000
Account Receivable 77,000
Merchandise inventory 162,400
Property, plant and equipment net of $624,000 accumulated depreciation 1,024,000
Total assets 1,290,400
Liabilities and Stockholders Equity
Accounts payable 239,000
Common stock 740,000
Retained earnings 311,400
Total liabilities and stockholders' equity $1,290,400
Required:
1. Accounts payable at the end of December would be .