Q10. 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 $370,000 for November, $340,000 for December, and $320,000 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 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 $26,700.
• Monthly depreciation is $20,000.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	25,000
Accounts receivable		81,000
Inventory		148,000
Property, plant and equipment, net of $512,000 accumulated depreciation		1,022,000
Total assets	$	1,276,000
Liabilities and Stockholders Equity
Accounts payable	$	282,000
Common stock		800,000
Retained earnings		194,000
Total liabilities and stockholders equity	$	1,276,000

The net income for December would be: