Student name: MULTIPLE CHOICE- Choose the one alternative that best completes the statement or answers the question. 1) Adams Co. sells steel components to contactors. 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. Assets Balance Sheet October 31 Cash Accounts receivable Inventory Property, plant and equipment, net of $502,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The cash balance at the end of December would be: $9,000 77,000 157,500 1,002,000 $ 1,245,500 $ 272,000 280,000 193,500 $1,245,500