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 montly expenses to be paid in cash for $21,100.

- Monthly depreciation is $19,000.

- Ignore taxes.

Retained earnings at the end of December would be:

A: $572,900

B: $614,400

C: $621,300

D: $529,000

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 montly expenses to be paid in cash for $21,100. - Monthly depreciation is $19,000. - Ignore taxes. Retained earnings at the end of December would be: A: $572,900 B: $614,400 C: $621,300 D: $529,000