Carvet 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 $367,000 for November, $337,000 for December, and $317.000 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 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 $26.400 Monthly depreciation is $19,400. Ignore taxes $ 24,100 80,400 146,800 Balance Sheet October 31 Assets Cash Accounts receivable Inventory Property, plant and equipment, net of $510,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 1,019,000 $ 1,270,300 $ 280,500 797,000 192,800 $ 1,270,300 The net income for December would be: BE $21,600 $26,300 $16.800 S41,000