The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information: Sales at $612,000, all for cash. Merchandise inventory on October 31 was $212,000. The cash balance November 1 was $21,600. Selling and administrative expenses are budgeted at $54,000 for November and are paid for in cash. Budgeted depreciation for November is $28,400. The planned merchandise inventory on November 30 is $245,200. The cost of goods sold is 85% 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: $9.400 $27,400 $37,800 $91,800