Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: o Sales are budgeted at $340.000 for November, $350,000 for December, and $360,000 for January o Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. The cost of goods sold is 70% of sales. o The company desires to have an ending merchandise inventory equal to 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. o Other monthly expenses to be paid in cash are $28,050 o Monthly depreclation is $28,400 o Ignore taxes Balence Sheet October 31 Assets Cash Accounts recelvable, net of allowance for uncollectible accounts Inventory Property plant and equipment, net of $529,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts peyable Common stock Retained earnings Total liabillties and stockholders' equity 17.300 105,900 217,500 1,058,000 $1,398,700 $ 308,000 780,000 310,700 $1,398,700 The net income for December would be: O $76.950 O $48,550 O $65,700 O $38,050