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.
The excess (deficiency) of cash available over disbursements for December would be:
a. $46,600
b. $19,200
c. $13,700
d. $32,900