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Carver Lumber sells lumber and general building supplies to bullding contractors in a medium-sized town in Montana. Data regarding the store's operations follow: - Sales

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Carver Lumber sells lumber and general building supplies to bullding contractors in a medium-sized town in Montana. Data regarding the store's operations follow: - Sales are budgeted at $353,000 for November, $323,000 for December, and $303,000 for January. - Collections are expected to be 80% in the month of sale and 20% in the month following the sale. - The cost of goods sold is 75% of sales. - The company desires to have an ending merchandise inventory equal to 60% 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 $25,000. - Monthly depreciation is $16,600. - Ignore taxes. Multiple Choice $39,150 $42,450 $32,735 $55.750

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