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Carter Lumber sells lumber and general building supplies to building contractors in am medium size town in Montana. Data regarding the store's operations follow. Sates

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Carter Lumber sells lumber and general building supplies to building contractors in am medium size town in Montana. Data regarding the store's operations follow. Sates are budgeted at $380,000 for November, S390.000 for December and S400 000 for January Collections are expected to be 70% n the month of sale. 27% in the month following the sate and 3% uncollectible The cost of goods sold is 65% of sates 01 he company desires to have an ending merchandise inventory equal to 80% of the following ninth's cost of goods sold Payment for merchandise is made in the month following the purchase Other monthly expenses to be paid in cash are $22,000 Monthly depreciation is $20,000 0 Ignore taxes

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