Albert Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow. Sales are budgeted at $260,000 for November, $230,000 for December, and $210,000 for January. .Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible. The cost of goods sold is 65% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next 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 $20,300. Monthly depreciation is $20,000. Ignore taxes. Balance Sheet October 31 Assets Cash $ 27,000 Accounts receivable, net of allowance for uncollectible accounts. 79,000 Merchandise inventory. 101,400 Property, plant and equipment. net of $574,000 accumulated depreciation. 1.082.000 Total assets... $1.289.400 Liabilities and Stockholders' Equity Accounts payable. Common stock Retained earnings Total liabilities and stockholders' equity, $169.000 740,000 380.400 $1.289 400 5. The net income for December would be: A. $60,200 B. $37,900 C. $40,200 D. $55,800 7. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: A. $46,000 B. $93,100 C. $43,700 D. $81,300 9. Retained earnings at the end of December would be: A. $380,400 B. $418,300 C. $471,300 D. $466,400