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 $354,000 for November, $364,000 for December, and $374,000 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 $27,900. o Monthly depreciation is $19,200. o Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable, net of allowance for uncollectible accounts Inventory Property, plant and equipment, net of $540,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 20,000 93,900 234,000 1,080,000 $1,427,900 $ 318,000 780,000 329,900 $1,427,900 The cash balance at the end of December would be: O $21,980 $20,000 $82,980 $102,980