Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town...
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Accounting
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 $350,000 for November, $320,000 for December, and $300,000 for January. - Collections are expected to be 90% in the month of sale and 10% in the month following the sale. - The cost of goods sold is 75% of sales. - The company desires to have an ending merchandise inventory equal to 60% 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 $24,700. - Monthly depreciation is $16,000. - Ignore taxes. Accounts payable at the end of December would be: Multiple Choice $231,000 $96,000 $135,000 $240,000
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