Carter Lumber sells tumber and general building supplies to buiding Contractors in a mered to Sales are budgeted at $380,000 for November, $390,000 for December, and $400,000 for January o Collections are expected to be 70%. In the month of sale, 27%. In the month following the sale, and income The cost of goods sold is 65% of sales o The company desires to have an ending merchandise inventory equal to Bo% of the following months cost of goods open o Other monthly expenses to be paid in cash are $22.000 o Monthly depreciation is $20,000 o ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable, net of allowance for uncollectible accounts Inventory Property, plant and equipment, net of $502,000 accumulated depreciation T. Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $13,000 77,000 197,600 992.000 $1,279,600 $240,000 780,000 259.600 $1,279,600 The net income for December would be: $94,500