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 $357,000 for November, $327,000 for December, and $307,000 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 $25,400.
• Monthly depreciation is $17,400.
• Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 21,100
Accounts receivable	78,400
Inventory	174,930
Property, plant and equipment, net of $505,500 accumulated depreciation	1,009,000
Total assets	$ 1,283,430
Liabilities and Stockholders Equity
Accounts payable	$ 275,500
Common stock	787,000
Retained earnings	220,930
Total liabilities and stockholders equity	$ 1,283,430

The net income for December would be:

rev: 03_05_2021_QC_CS-256271

Multiple Choice

• $47,230

• $55,300

• $72,700

• $59,000