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 $346,000 for November, $356,000 for December, and $366,000 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 70% 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 $33,450. o Monthly depreciation is $21,400. o Ignore taxes. Balance Sheet October 31 Assets $ 18,500 80,400 231,500 906,000 $1,236,400 Cash Accounts receivable, net of allowance for uncollectible accounts Inventory Property, plant and equipment, net of $453,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 222,000 780,000 234,400 $1,236,400 The cash balance at the end of December would be: $66,020 $18,500 $147,020 $128,520