Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:

Sales are budgeted at $$290,000$ for November, $$310,000$ for December, and $$210,000$

for January.

Collections are expected to be $65\%$ in the month of sale and $35\%$ in the month following the sale.

The cost of goods sold is $80\%$ of sales.

The company desires to have an ending merchandise inventory at the end of each

month equal to $70\%$ of the next 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 $$21,100.$

Monthly depreciation is $$21,000.$

Ignore taxes.

The net income for

December would be:

$$19,900$

$$38,700$

$$13,700$

$$40,900$