Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town...
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Accounting
Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: 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. - The company desires to have an ending merchandise inventory equal to 80% 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 $22,000. o Monthly depreciation is $20,000. o Ignore taxes. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: $105,300$88,700$117,000$207,900
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