Carter Lumber sells lumber and general bulding supplies to bulding contractors In a medium-stzed town in Montana. Deta regarding the store's operations follow o Sales are budgeted at $404,000 for November, $414,000 for December, and $424,000 for January 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 75% 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 folowing the purchase. o Other monthly expenses to be pald in cash are $22.550 o Monthly depreciation is $24,600. o Ignore taxes Belance Sheer October 31 Assets s 17.200 93.800 214,500 1024,000 $1,349,300 Cosh Accounts receiveble, net of allowance for uncollectible accounts Property, plant and equipment, ne of $512,000 accumulased depreclation Total essess Liobilinies and Stockholders Equity Accounts payable Common stock Retained eemings Total labilities and stockholders equity $249.000 780000 20.300 1,349 300 10 12 13 The net income for December would 14 15 O $80.950 O 556.350 O s66000 O $43.930 16 17 18 Ready O Type here to search