The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:

Sales at $600,000, all for cash. Merchandise inventory on October 31 was $277,000. The cash balance November 1 was $26,500. Selling and administrative expenses are budgeted at $61,800 for November and are paid for in cash. Budgeted depreciation for November is $33,000. The planned merchandise inventory on November 30 is $307,600. The cost of goods sold is 65% 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: