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 $380,000 for November, $390,000 for December, and $400,000 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 65% 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 $22,000. o Monthly depreciation is $20,000. o Ignore taxes. Balance Sheet October 31 Assets Cash $13,000 Accounts receivable, net of allowance for uncollectible accounts 77,000 Inventory 197,600 Property, plant and equipment, net of $502.000 accumulated depreciation 992 000 Total assets $1.279.600 Liabilities and Stockholders Equity Accounts payable $240,000 Common stock 780,000 Retained carnings 259.600 Total liabilities and stockholders equity _$1,279,600 Retained earnings at the end of December would be: $259,600 $342.400 $422.000 $445.100 Accounts payable at the end of December would be: O $253,500 550.700 $208,000 S258.700