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 $370,000 for November, $340,000 for December, and $320,000 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 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 $26,700.

Monthly depreciation is $20,000.

Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 25,000
Accounts receivable	81,000
Inventory	148,000
Property, plant and equipment, net of $512,000 accumulated depreciation	1,022,000
Total assets	$ 1,276,000
Liabilities and Stockholders Equity
Accounts payable	$ 282,000
Common stock	800,000
Retained earnings	194,000
Total liabilities and stockholders equity	$ 1,276,000

The net income for December would be: