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 $351.000 for November, $321.000 for December, and $301.000 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 70% 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 $24.800 Monthly depreciation is $16.200. Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Inventory Property, plant and equipment, net of $502,500 accumulated depreciation Total assets Liabilities and stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 19,300 77,200 196,560 1,003,000 $1,296,060 272,500 781,000 242,560 $1,296,060 The net income for December would be: Multiple Choice $26,300 $39,400 $23,200 $18,400