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 $25,900. Monthly depreciation is $18,400. Ignore taxes. Balance Sheet October 31 Assets Cash $ 22,600 Accounts receivable 79,400 Inventory 162,900 Property, plant and equipment, net of $508,000 accumulated depreciation 1,014,000 Total assets $ 1,278,900 Liabilities and Stockholders' Equity Accounts payable $ 278,000 Common stock 792,000 Retained earnings 208,900 Total liabilities and stockholders' equity $ 1,278,900 The net income for December would be: 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 of 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 Cash $ 22,600 Accounts receivable 79,400 Inventory 162,900 Property, plant and equipment, net of $508,000 accumulated depreciation 1,014,000 Total assets $ 1,278,900 Liabilities and Stockholders' Equity Accounts payable $ 278,000 Common stock 792,000