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 $367,000 for November, $337,000 for December, and $317,000 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 merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $26,400. • Monthly depreciation is $19,400. • Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable Inventory Property, plant and equipment, net of $510,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity. The net income for December would be: 4 $ 24,100 80,400 146,800 1,019,000 $ 1,270,300 $ 280,500 797,000 192,800 $ 1,270,300

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 $367,000 for November, $337,000 for December, and $317,000 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 merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $26,400. • Monthly depreciation is $19,400. • Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable Inventory Property, plant and equipment, net of $510,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity. The net income for December would be: 4 $ 24,100 80,400 146,800 1,019,000 $ 1,270,300 $ 280,500 797,000 192,800 $ 1,270,300

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...

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