Carpon Lumber sells lumber and general building supples to building contractos in a medium sized town in Montana. Data regarding the store’s operations follow:
• Sales are expected tp be 55% in the month of sale, 44% in the month following the sale, and 1% uncollectable.
• The cost of goods sold is 75% of sales
• The company purchases 60% of its merchandise is mad in the month following the purchase.
• Other monthly expenses to be paid in cash are $22,100
• Monthly depreciation is $19,000
• Ignore taxes
Cash $ 13,000
Accounts receivalbe (net of allowance for uncollectible accounts $ 82,000
Inventory $ 153,000
Property, plants, and equipment ( net of $598,000 acumulated depreciation) $ 1,138,000
Total assets $ 1,386,000
Liabilities and Stockholders’ equity
Accounts Payable $ 257,000
Common Stock $ 600,000
Retained earnings $ 529,000
Total liabilities and stockholders’ equity $ 1,386,000
A. Determine the net income for December
B. Determeine the cash balance at the end of December
C. Calculate the accounts receivable balance, net of uncollectible accounts, at the end of December.
D. Determine the accounts payable at the end of December