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 earnings	259,600
Total liabilities and stockholders' equity	$1,279,600

Accounts payable at the end of December would be:

a. $253,500

b. $50,700

c. $208,000

d. $258, 700