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 $363,000 for November, $333,000 for December, and $313,000 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 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 $26,000 Monthly depreciation is $18,600 Ignore taxes . 34 $ 22,900 79,600 177,870 Balance Sheet October 31 Assets Cash Accounts receivable Inventory Property, plant and equipment, net of $588,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 1,025,000 $ 1,295,370 278,500 793, 000 223,870 $ 1,295,378 The net income for December would be: Sove & Exit Submit $73.900 $47170 559.600 $55,300