High Plains Lumber Sells Lumber and General Building Supplies to Building

question 133

Essay

High Plains Lumber sells lumber and general building supplies to building contractors in a medium-sized town in North Dakota. Data regarding the store's operations follow:
? Sales are budgeted at $340,000 for November, $350,000 for December, and $370,000 for January.
? Collections are expected to be 55% in the month of sale, 44% in the month following the sale, and 1% uncollectible.
? The cost of goods sold is 75% of sales.
? The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. Payment for merchandise is made in the month following the purchase.
? Other monthly expenses to be paid in cash are $21,100.
? Monthly depreciation is $19,000.
? Ignore taxes.

Required:
a. Determine the net income for December.
b. Determine 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.
e. Determine the balance in Retained earnings at the end of December.

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Definitions:

Meselson and Stahl

Scientists who conducted a landmark experiment in 1958 demonstrating that DNA replication is semiconservative, where each of the original strands serves as a template for a new strand.

Semiconservatively

A method of DNA replication where each of the two parental strands serve as templates for new strands, leading to two daughter molecules each having one old and one new strand of DNA.

Meselson and Stahl

This refers to the scientists Matthew Meselson and Franklin Stahl who, in 1958, conducted an experiment providing evidence supporting the semi-conservative model of DNA replication.

Nucleotide Bases

The building blocks of DNA and RNA, consisting of adenine, cytosine, guanine, thymine (DNA), and uracil (RNA).