Larch sells baked goods products in Omaha, NE. Data regarding the store's operations follow November December January * Sales budget * Collection schedule 400,000 375,000 S 420,000 Month of sale Next month Uncollectible 70% 27% 3% * The cost ofgoods sold is 60% of sales. Other monthly expenses to be paid in cash are S25,000 Monthly depreciation is S15,000. Inventory purchase policy is to maintain 20% of the next month's sales as the ending inventory 60% of the purchase is pind for in Lhe month of purchase. the remainder is paid in the following month. * * Larch declared a special dividend of $10,000 on Norvember S to be paid on Dec. 15 * Larch 's Account Payable balancc as of November 1 is 63,00x) 13 Net income for November would be $108,000 S98,000 $123,000 120,000 A. E. None of the above 14 The Lotal cash disbursement for invenlory purchases in Dccemher would he 138,240 230,40) C. $233,040 237,000 I). $ D. None of the above Page 8 of9