The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:
| • Sales at $500,000, all for cash. |
| • Merchandise inventory on October 31 was $225,000. |
| • The cash balance November 1 was $23,000. |
| • Selling and administrative expenses are budgeted at $75,000 for November and are paid for in cash. |
| • Budgeted depreciation for November is $35,000. |
| • The planned merchandise inventory on November 30 is $255,000. |
| • The cost of goods sold is 70% of the selling price. |
| • All purchases are paid for in cash. |
| • There is no interest expense or income tax expense. |