1) Adams Co. sells steel components to contractors. Data regarding the store's operations follow: 0 Sales are budgeted at $350,000 for November, $320,000 for December, and $300,000 for January. 0 Collections are expected to be 90% in the month of sale and 10% in the month following the sale. 0 The cost of geods sold is 75% of sales. 0 The company desires to have an ending merchandise inventory equal to 60% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. 0 Other monthly expenses to be paid in cash are $24,700. 0 Monthly depreciation is $16,000. 0 Ignore taxes. Balance Sheet October 31 Assets Cash $ 9,000 Accounts receivable 77,000 Inventory 157,500 Property, plant and equipment, net of $502,000 1,002,000 accumulated depreciation Total assets $ 1,245,500 Liabilities and Stockholders' Equity Accounts payable $ 272,000 Common stock 780,000 Retained earnings 193,500 Total liabilities and stockholders' equity $ 1,245,500 W The cash balance at the end of December would be: