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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...

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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