Carter Lumber Sells Lumber and General Building Supplies to Building

question 68

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 accounts receivable balance, net of uncollectible accounts, at the end of December would be:

• A)$105,300
• B)$88,700
• C)$117,000
• D)$207,900

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Definitions:

Major Organic Product

The primary product formed in the highest yield during a chemical reaction involving organic compounds.

Reaction Conditions

The specific parameters under which a chemical reaction is performed, including temperature, pressure, solvent, and catalysts.

2,5-Dimethylhexanoic Acid

2,5-Dimethylhexanoic Acid is an organic compound characterized by a branched chain structure that falls within the category of carboxylic acids.

Reagents

Substances or compounds added to a system to bring about a chemical reaction or are involved in the reaction.