Carver 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 $368,000 for November, $338,000 for December, and $318,000 for January.
• Collections are expected to be 90% in the month of sale and 10% in the month following the sale.
• The cost of goods sold is 75% of sales.
• The company desires to have an ending merchandise inventory equal to 60% 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 $26,500.
• Monthly depreciation is $19,600.
• Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 24,400
Accounts receivable	80,600
Inventory	165,600
Property, plant and equipment, net of $511,000 accumulated depreciation	1,020,000
Total assets	$ 1,290,600
Liabilities and Stockholders Equity
Accounts payable	$ 281,000
Common stock	798,000
Retained earnings	211,600
Total liabilities and stockholders equity	$ 1,290,600

The net income for December would be:

Multiple Choice

$58,000

$43,200

$31,910

$38,400