The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information: Sales at $562,000, all for cash. Merchandise inventory on October 31 was $242,000. The cash balance November 1 was $20,600. Selling and administrative expenses are budgeted at $68,000 for November and are paid for in cash. Budgeted depreciation for November is $32,400. The planned merchandise inventory on November 30 is $278,700. The cost of goods sold is 80% 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:

Noreen 4e Recheck 2017-22-03

$12,000

$30,000

$44,400

$112,400