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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:

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 $350,000 for November, $320,000 for December, and $300,000 for January.
Collections are expected to be 90% in the month of sale and 10% in the month following the sale.
The cost of goods sold is 75% of sales.
The company desires to have an ending merchandise inventory equal to 60% of the following 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 $24,700.
Monthly depreciation is $16,000.
Ignore taxes.
Balance Sheet
October 31
Assets
Cash                                                                                                                                        $ 19,000
Accounts receivable                                                                                                                77,000
Inventory                                                                                                                                                         157,500
Property, plant and equipment, net of $502,000 accumulated depreciation              1,002,000
Total assets                                                                                                                          $ 1,255,500
Liabilities and Stockholders Equity
Accounts payable                                                                                                                $ 272,000
Common stock                                                                                                                       780,000
Retained earning s                                                                                                                 203,500
Total liabilities and stockholders equity                                                                          $ 1,255,500
 
Retained earnings at the end of December would be?
 
 
  

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