Larrys Lumber sells lumber and general building supplies to building contractors. Larrys net income is budgeted to be $93,500 in December. There are no budgeted dividends to be paid.

Statement of Financial Position

November 30

Assets

Cash $19,900

Accounts receivable (net of allowance for uncollectible accounts) 84,700

Inventory 101,907

Property, plant and equipment (net of $495,000 accumulated depreciation) 972,000

Total assets $1,178,507

Liabilities and Stockholders Equity

Accounts payable $261,300

Common stock 798,000

Retained earnings 119,207

Total liabilities and stockholders equity $1,178,507

The retained earnings at the end of December would be:

a. $119,207

b. $25,707

c. ($48,593)

d. $212,707