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 $354,000 for November, $364,000 for December, and $374,000 for January. o Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. o The cost of goods sold is 65% 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 $27,900. o Monthly depreciation is $19,200. o Ignore taxes.

Balance Sheet October 31
Assets
Cash	$ 20,000
Accounts receivable, net of allowance for uncollectible accounts	93,900
Inventory	234,000
Property, plant and equipment, net of $540,000 accumulated depreciation	1,080,000
Total assets	$1,427,900
Liabilities and Stockholders' Equity
Accounts payable	$ 318,000
Common stock	780,000
Retained earnings	329,900
Total liabilities and stockholders' equity	$1,427,900

The net income for December would be:

a. $99,500

b. $80,300

c. $96,880

d. $69,380