Carpon Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: Sales are budgeted at $340,000 for November, $350,000 for December, and $370,000 for January. Collections are expected to be 55% in the month of sale, 44% in the month following the sale, and 1% uncollectible. The cost of goods sold is 75% of sales. The company desires to have an ending merchandise inventory equal to 60% of the next month's cost of goods sold. 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 $19,000. Ignore taxes.

Required: (SHOW ALL WORK)

a. What is the net income for December?

b. What is the cash balance at the end of December?

c. What is the accounts receivable balance, net of uncollectible accounts, at the end of December?

d. What is Accounts payable at the end of December?

e. What is retained earnings at the end of December?

Statement of Financial Position October 31 Assets 13,000 Cash Accounts receivable (net of allowance for uncollectible accounts) 82,000 153,000 Inventory Property, plant and equipment (net of $598,000 accumulated depreciation 1,138,000 s 1,386,000 Total assets. Liabilities and Stockholders' Equity 257,000 Accounts payable Common stock 600,000 Retained earnings 529,000 Total liabilities and stockholders' equity. $1.386.000