Care Lumber selber and general building supplies to building contractors in a medium-sved town in Montana Detsregarding the post obow Sales are budgeted at $30,000 for November $190,000 for December, and $100,000 for January Collections we expected to be 70% the month of sale 27 the month following the sale, and collectible The cost of goods sold is 65% offers o The company desires to have an ending merchandise vor equal to 30% of the following month's cost of goods sold Payment for mechanism in the month following the purchase o Other monthly expenses to be paid in cash or $22.000 Monthly depreciation $20,000 o ghore te Balance Sheet October 31 Ass Cai Accounts receivable net of towance for uncollectible accounts Inventory Property, plant and equipment, net of $502.000 accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Common stock Retained comings Totales and stockholders' equity SO 77000 197600 902.000 $1.279.000 $240,000 780,000 259.600 51.229.000 Retained Total liabilities and stockholders' equity The net income for December would be: $82,800 $94,500 $101,400 $114,500