Item18

4points

Time Remaining 1 hour 7 minutes 33 seconds

01:07:33

Item 18

Item 18 4 points

Time Remaining 1 hour 7 minutes 33 seconds

01:07:33

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 $351,000 for November, $321,000 for December, and $301,000 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 80% of sales.
• The company desires to have an ending merchandise inventory equal to 70% 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 $24,800.
• Monthly depreciation is $16,200.
• Ignore taxes.