Carter Lumber selslumber 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 $492,000 for November, $502,000 for December, and $512,000 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 75% of sales. 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. Other monthly expenses to be paid in cash are $22,950. Monthly depreciation is $25,900. o ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable, net of allowance for uncollectible accounts invernory Property, plant and equipment, net of $583,000 accumulated depreciation Total assets Lintities and Stockholders' Equity Accounts payable Common stock $15.700 85.200 237.500 166.000 $1505,400 $ 339.000 780.000 350.400 $1505.400 Tota labies and stockholders' equilty The cash balance at the end of December would be $170,640 O $16,700 O $89.640 O 5153.940