Carver Lumber sells lumber and general buil ding supplies to building contractors in a medium sized town in Montana. Data regarding the store's operations follow . Sales are budgeted at $367000 for November, $337,000 for December, and $317000 for January Collections are expected to be 80% in the month of sale and 20% in the month following the sale. * The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory equal to 50% of the following 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 $26,400 Monthly depreciation Is $19.400 Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Inventory Property, plant and equipment, net of s 24,10e 88,480 146,880 1,019,8ee $518,58e accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $1,27e,309 $1,27e, 3ee 288,58e 797,880 192,800 The net income for December would be: Multiple Choice $21,600 $26,300 $16,800 $41,000