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 $356,000 for November, $326,000 for December, and $306,000 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 $25,300. Monthly depreciation is $17,200. Ignore taxes. . $ 20,800 78, 200 160,200 1,008,000 Balance Sheet October 31 Assets Cash Accounts receivable Inventory Property, plant and equipment, net of $505,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $1,267,200 $ 275,000 786,000 206,200 $1,267,200 The net income for December would be: Multiple Choice O $42,600 $56,200 O O $32,570 o $39,000