Carver 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 $430,000 for November, $360,000 for December, and $150,000 for January.

Collections are expected to be 83% in the month of sale, 4% in the month following the sale, and 13% uncollectible.

The cost of goods sold is 77% of sales.

The company purchases 56% of its merchandise in the month prior to the month of sale and 44% 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 $23,600.

Monthly depreciation is $28,600.

Ignore taxes.

Statement of Financial Position
October 31

Assets:

Cash $ 25,000
Accounts receivable (net of allowance for uncollectible accounts) 58,000
Inventory 151,500
Property, plant and equipment (net of $515,000 accumulated depreciation) 1,042,000
Total assets $1,276,500



Liabilities and Stockholders' Equity:


Accounts payable $ 232,000
Common stock 650,000
Retained earnings 394,500
Total liabilities and stockholders' equity 1,276,500

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


a. $16,720

b. $43,600

c. $20,230

d. $14,400

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