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 $354,000 for November, $324,000 for December, and $304,000 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 70% 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 $25,100. Monthly depreciation is $16,800. Ignore taxes. Balance Sheet October 31 Assets Cash 20,200 Accounts receivable 77,800 Inventory 173,460 Property, plant and equipment, net of 1,006,000 $504,000 accumulated depreciation Total assets $1,277,460 Liabilities and Stockholders' Equity Accounts payable $ 274,000 Common stock 784,000 Retained earnings 219,460 Total liabilities and stockholders' equity $1,277,460 The net income for December would be: Multiple Choice $55,300 $72,100 $47,260 $58,700