Sales are budgeted at 260,000 for November 230,000 for December and 210,000 for January. Collections are expected to be 80% in the month of sales 19% in the month following sale, and 1% uncollectable. The cost of goods sold is 65% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 60% of next months cost of goods sold. Payment for merchandise is made in the following month following the purchase. Other monthly expenses to be paid in cash are 20,300 Monthly depreciation is 20,000 Ignore taxes

The net income for December would be a) $55,800 b) $40,200 c) $37,900 d) $60,200