Carpon Lumber Sells Lumber and General Building Supplies to Building

question 88

Multiple Choice

Carpon 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 $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 desires to have an ending merchandise inventory equal to 60% of the next 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 $21,100.
• Monthly depreciation is $19,000.
• Ignore taxes.

-The net income for December would be:

• A)$66,400
• B)$43,900
• C)$47,400
• D)$61,500

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Definitions:

Rapport

A positive relationship characterized by mutual respect, trust, and understanding.

Economic Level

A measure of the economic status or wealth of an individual, group, or area, often affecting their access to resources.

Occupational Background

The history of jobs and professional experiences that an individual has had in their field of work.

Rapport

A positive relationship or connection between people, characterized by mutual understanding, trust, and agreement.