A) $47,230

B) $55,300

C) $72,700

D) $59,000

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 $357,000 for November, $327,000 for December, and $307,000 for January. Collections are expected to be 80% in the month of sale and 20% in the month following the sale. The cost of goods sold is 70% of sales. The company desires to have an ending merchandise inventory equal to 70% 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 $25,400. Monthly depreciation is $17,400. Ignore taxes. Balance Sheet October 31 Assets Cash $ 21,100 Accounts receivable 78,400 Inventory 174,930 Property, plant and equipment, net of 1,009,000 $505,500 accumulated depreciation Total assets $1,283,430 Liabilities and Stockholders' Equity Accounts payable $ 275,500 Common stock 787,000 Retained earnings 220,930 Total liabilities and stockholders' equity $1,283, 430 The net income for December would be