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 $366,000 for November, $336,000 for December, and $316,000 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 $26,300.

Monthly depreciation is $19,200.

Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	23,800
Accounts receivable		80,200
Inventory		179,340
Property, plant and equipment, net of $510,000 accumulated depreciation		1,018,000
Total assets	$	1,301,340
Liabilities and Stockholders Equity
Accounts payable	$	280,000
Common stock		796,000
Retained earnings		225,340
Total liabilities and stockholders equity	$	1,301,340

The net income for December would be:

Multiple Choice

$55,300

$59,900

$47,140

$74,500