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
Cash	$ 18,500
Accounts receivable, net of allowance for uncollectible accounts	80,400
Inventory	231,500
Property, plant and equipment, net of $453,000 accumulated depreciation	906,000
Total assets	$1,236,400
Liabilities and Stockholders' Equity
Accounts payable	$ 222,000
Common stock	780,000
Retained earnings	234,400
Total liabilities and stockholders' equity	$1,236,400

The cash balance at the end of December would be:

$128,520

$66,020

$18,500

$147,020