Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town...
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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 $361,000 for November, $331000 for December, and $311,000 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 50% of the following month's cost of goods sold Payment for merchandises made in the month following the purchase Other monthly expenses to be paid in cash are $25,800. Monthly depreciation is $18,200. Ignore taxes Balance Sheet October 31 Assets Cash 22,50 Accounts receivable 79,200 Inventory 144,400 Property, plant and equipment, net of 1.013,000 $507,500 accumulated depreciation Total assets $1,258,900 Liabilities and Stockholders' Equity Accounts payable $ 272,500 Common stock 791,000 Retained earnings 190,400 Total liabilities and stockholders' equity $1,255,980 The net income for December would be
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