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Carter Lumber sells lumber and general building supplies to building contractors in a medium sured town in Montana Data regarding the store's operations follow Sales
Carter Lumber sells lumber and general building supplies to building contractors in a medium sured town in Montana Data regarding the store's operations follow Sales are budgeted at $380,000 for November. $390,000 for December, and $400,000 for January .Collections are expected tobe 70% n the month of sale, 27% in the month following the sale, rd Sundolcibe The cost of goods sold is 65% of sales . The com pany desres to have an e ing merchandise in ento y equ.al to 80% of the fol ing montscst of goods sold Payment tor mecha se sme dent en hel ing the Other monthly expenses to be paid in cash are $22.000 Monthly depreciation is $20,000 Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable. net of allowance for uncollectible accounts S 13,000 77,000 197.600 Property, piant and equipment, net of $502.000 accumulated depreciation Total assets.... o$1232000 Liabilities and Stockholders Equity Accounts payable Common stock Retained eamings Total liabilities and stockholders equity S 240,000 780,000 The cash belance at the end of December wouid be O $195,400 O $114.400 O $13,000
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