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Soles are budgeted at $359,000 for November, $329,000 for December, and $309,000 for January . Collections are expected to be 80% in the month of

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Soles are budgeted at $359,000 for November, $329,000 for December, and $309,000 for January . Collections are expected to be 80% in the month of sale and 20% 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 $25,600 Monthly depreciation is $17,800 Ignore taxes $ 21,700 78,800 161,550 Balance Sheet October 31 Assets Cash Accounts receivable Inventory Property, plant and equipment, net $506,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 1,011,000 $ 1,273,050 $ 276,500 789,000 207,550 $ 1,273,050 The net income for December would be: Soles are budgeted at $359,000 for November, $329,000 for December, and $309,000 for January . Collections are expected to be 80% in the month of sale and 20% 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 $25,600 Monthly depreciation is $17,800 Ignore taxes $ 21,700 78,800 161,550 Balance Sheet October 31 Assets Cash Accounts receivable Inventory Property, plant and equipment, net $506,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 1,011,000 $ 1,273,050 $ 276,500 789,000 207,550 $ 1,273,050 The net income for December would be

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