Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: o Sales are budgeted at $434,000 for November, $444,000 for December, and $454,000 for January. o Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. o The cost of goods sold is 85% of sales. o The company desires to have an ending merchandise inventory equal to 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. o Other monthly expenses to be paid in cash are $33,150. o Monthly depreciation is $14,000. o Ignore taxes.

Balance Sheet October 31
Assets
Cash	$ 14,300
Accounts receivable, net of allowance for uncollectible accounts	104,700
Inventory	247,000
Property, plant and equipment, net of $527,000 accumulated depreciation	1,054,000
Total assets	$1,420,000
Liabilities and Stockholders' Equity
Accounts payable	$ 275,000
Common stock	780,000
Retained earnings	365,000
Total liabilities and stockholders' equity	$1,420,000

The cash balance at the end of December would be:

$52,780

$119,480

$133,780

$14,300