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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 $450,000 for November, $380,000 for December, and $280,000 for January. - Collections are expected to be 87% in the month of sale, 8% in the month following the sale, and 5% uncollectible. - The cost of goods sold is 69% of sales. - The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. Payment for merchandise is made in the month following the purchase. - Other monthly expenses to be paid in cash are $14,700. - Monthly depreciation is $10,000. - Ignore taxes. Statement of Financial Position October 31 Assets: Cash $    15,000 Accounts receivable (net of allowance for uncollectible accounts) 85,000 Inventory 157,500 Property, plant and equipment (net of $512,000 accumulated depreciation) 1,012,000 Total assets $1,269,500 Liabilities and Stockholders' Equity: Accounts payable $   262,000 Common stock 680,000 Retained earnings    327,500 Total liabilities and stockholders' equity $1,007,500 The cash balance at the end of December would be: $461,880 $245,800 $284,800 $285,180 Question 15: (1 point) 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 $450,000 for November, $380,000 for December, and $280,000 for January. - Collections are expected to be 87% in the month of sale, 8% in the month following the sale, and 5% uncollectible. - The cost of goods sold is 69% of sales. - The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. Payment for merchandise is made in the month following the purchase. - Other monthly expenses to be paid in cash are $14,700. - Monthly depreciation is $10,000. - Ignore taxes. Statement of Financial Position October 31 Assets: Cash $ 15,000 Accounts receivable (net of allowance for uncollectible accounts) 85,000 Inventory 157,500 Property, plant and equipment (net of $512,000 accumulated depreciation) 1,012,000 Total assets $1,269,500 Liabilities and Stockholders' Equity: Accounts payable $ 262,000 Common stock 680,000 Retained earnings 327,500 Total liabilities and stockholders' equity $1,007,500 The cash balance at the end of December would be: $461,880 $245,800 $284,800 $285,180

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