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 o Other monthly expenses to be paid in cash are $33,450. o Monthly depreciation is $21,400. o Ignore taxes. made in the month following the purchase. Balance Sheet October 31 Assets 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 $ 18,500 80,400 231,500 906,000 $1,236,400 $ 222,000 780,000 234,400 $1,236,400 Retained earnings Total liabilities and stockholders' equity The cash balance at the end of December would be: $147,020 $66,020 $128.520 O $18,500