Carner Lumber sells lumber and general building supplies to building contractors in a medium$-$sized town in Montana. Data regarding the store's operations follow:

$$ Sales are budgeted at $$370,000$ for November, $$360,000$ for December, and $$340,000$ for January. $$ Collections are expected to be $85\%$ in the month of sale, $13\%$ in the month following the sale, and $2\%$ uncollectible $$ The cost of goods sold is $70\%$ of sales. $$ The company purchases $30\%$ of its merchandise in the month prior to the month of sale and $70\%$ in the month of sale. Payment for merchandise is made in the month following the purchase. $$ Other monthly expenses to be paid in cash are $$24,600.$ Monthly depreciation is $$17,000.$ Ignore taxes.

Statement of Financial Position October $31$

Assets

Cash $ $19,000$ Accounts Receivable $($ net of allowance for doubtful accounts$).83,000$ Inventory $77,700$ Propert, plant & equipment $($ net of $$502,000$ depreciation$).968,000$

Total Assets. $1,147,700$

Liabilities and Stockholder's Equity Accounts payable. $259,000$ Common Stock. $800,000$ Retained Earnings $88,700$

Total Liabilities & Stockholder's Equity. $1,147,700$

The net income for December would be:

Select the correct response.

e:

Select the correct responsCarner Lumber sells lumber and general building supplies to building contractors in a medium$-$sized town in Montana. Data regarding the store's operations follow:

$$ Sales are budgeted at $$370,000$ for November, $$360,000$ for December, and $$340,000$ for January. $$ Collections are expected to be $85\%$ in the month of sale, $13\%$ in the month following the sale, and $2\%$ uncollectible $$ The cost of goods sold is $70\%$ of sales. $$ The company purchases $30\%$ of its merchandise in the month prior to the month of sale and $70\%$ in the month of sale. Payment for merchandise is made in the month following the purchase. $$ Other monthly expenses to be paid in cash are $$24,600.$ Monthly depreciation is $$17,000.$ Ignore taxes.

Statement of Financial Position October $31$

Assets

Cash $ $19,000$ Accounts Receivable $($ net of allowance for doubtful accounts$).83,000$ Inventory $77,700$ Propert, plant & equipment $($ net of $$502,000$ depreciation$).968,000$

Total Assets. $1,147,700$

Liabilities and Stockholder's Equity Accounts payable. $259,000$ Common Stock. $800,000$ Retained Earnings $88,700$

Total Liabilities & Stockholder's Equity. $1,147,700$

The net income for December wou

ld be:

Select the correct response.

e:

Select the correct response.