2) Jeremiah Bullfrogs has budgeted its activity for December according to the following information: 0 Sales at $550,000, all for cash. 0 Merchandise inventory on November 30 was $300,000. a The cash balance at December 1 was $25,000. 0 Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash. 0 Budgeted depreciation for December is $25,000. 0 The planned merchandise inventory on December 31 is $270,000. I The cost of goods sold is 75% of the sales price. 0 All purchases are paid for in cash. 0 There is no interest expense or income tax expense. The budgeted net income for December is closest to : A) $32,500 B) $137,500 C) $42,500 D) $77,500