Carter Lumber Sells Lumber and General Building Supplies to Building

question 122

Multiple Choice

Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: o Sales are budgeted at $380,000 for November, $390,000 for December, and $400,000 for January.
O Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.
O The cost of goods sold is 65% of sales.
O The company desires to have an ending merchandise inventory equal to 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
O Other monthly expenses to be paid in cash are $22,000.
O Monthly depreciation is $20,000.
O Ignore taxes. The cash balance at the end of December would be:

• A)$182,400
• B)$114,400
• C)$13,000
• D)$195,400

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Definitions:

Agenda-Setting Theory

Explains that media have a large influence on audiences by choosing which stories to make prominent.

Public Opinion

The aggregate of individual attitudes or beliefs held by the adult population on particular issues, events, or public figures, often measured by surveys or polls.

News Media

The sector of the media that focuses on presenting current news to the public through various platforms, including newspapers, television, and the internet.

AVE

Advertising Value Equivalency, a metric used in public relations to measure the benefit to a client from media coverage that is equivalent to the cost of advertising.