Dilbert Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $260,000 for November, $230,000 for December, and $210,000 for January Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible o The cost of goods sold is 65% of sales o The company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next montly's cost of goods sold o Other monthly expenses to be paid in cash are $20,300. o Monthly depreciation is $20,000 o ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable, net of allowance for uncollectible accounts Merchandise inventory Property, plant and equipment, net of $574,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $27,000 79,000 101400 1.082.000 51.289.400 $169,000 740.000 380 400 $1.289.400 The net income for December would be $55,800 O $40,200 $60.200 $37.900 Carter Lumber sells lumber and general building supplies to building contractors in a medium sized town in Montana, Data regarding the store 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 more 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 Accounts receivable, net of allowance for uncollectible accounts Inventory Property, plant and equipment, net of $502.000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $13,000 77,000 197,600 992.000 $1279.000 $240,000 780,000 259,600 $1,279,600 Accounts payable at the end of December would be: $253,500 $258,700 $50,700 $208,000