Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: Sales are budgeted at $358,000 for November, $328,000 for December, and $308,000 for January. Collections are expected to be 90% in the month of sale and 10% in the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory equal to 50% 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 $25,500. Monthly depreciation is $17,600. Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable Inventory Property, plant and equipment, net of $506,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The net income for December would be: $ 21,400 78,600 143, 200 1,010,000 $ 1,253,200 $ 276,000 788,000 189, 200 $ 1,253,200

Carver Lumber sells lumber and general buliding supplies to buliding contractors in a medium-sized town in Montana. Data regarding the store's operations follow: - Sales are budgeted at $358,000 for November, $328,000 for December, and $308,000 for January. - Collections are expected to be 90% in the month of sale and 10% in the month following the sale. - The cost of goods sold is 80% of sales. - The company desires to have an ending merchandise inventory equal to 50% 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 $25,500 - Monthly depreciation is $17,600. - Ignore taxes. Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: - Sales are budgeted at $358,000 for November, $328,000 for December, and $308,000 for January. - Collections are expected to be 90% in the month of sale and 10% in the month following the sale. - The cost of goods sold is 80% of sales. - The company desires to have an ending merchandise inventory equal to 50% 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 $25,500. - Monthly depreciation is $17,600. - Ignore taxes