Please answer and explain. I am taking the test right now:

The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information: Sales at $500,000, all for cash. Merchandise inventory on October 31 was $250,000. The cash balance November 1 was $22,400. Selling and administrative expenses are budgeted at $80,400 for November and are paid for in cash Budgeted depreciation for November is $26,000 The planned merchandise inventory on November 30 is $284,900 . The cost of goods sold is 70% of the selling price. All purchases are paid for in cash There is no interest expense or income tax expense The budgeted net income for November is: O $43,600 O $61,600 O $69.600 O $150,000