Sales are budgeted at $368,000 for November, $338,000 for December, and $318,000 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 75% of sales. The company desires to have an ending merchandise Inventory equal to 60% 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 $26,500 Monthly depreciation is $19,600. Ignore taxes. . $ 24,400 80,600 165,600 Balance Sheet October 31 Assets Cash Accounts receivable Inventory Property, plant and equipment, net of $511,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 1,020,000 $ 1,290,600 $ 281,000 798,000 211,600 $ 1,290,600 The net income for December would be