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 $362,000 for November, $332,000 for December, and $312,000 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 o goods sold. Payment for merchandise is made in the month following the purchase. - Other monthly expenses to be paid in cash are $25,900 - Monthly depreciation is $18,400. - Ignore taxes. Balance Sheet October 31 Assets CashAccountsreceivableInventoryProperty,plantandequipment,netof$508,000accumulateddepreciation1,014,000TotalassetsLiabilitiesandStockholdersEquityAccountspayableCommonstockRetainedearningsTotalliabilitiesandstockholdersequity$22,60079,400162,900$1,278,900$278,000$92,000208,900$1,278,900 The net income for December would be: $57,100 $32,240 $42,900 $38,700