The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information: . Sales at $550,000, all for cash. Merchandise inventory on November 30 was $300,000 The cash balance at December 1 was $25,000. Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash. Budgeted depreciation for December is $35,000. The planned merchandise inventory on December 31 is $270,000. . The cost of goods sold is 75% of the sales price. All purchases are paid for in cash. There is no interest expense or income tax expense. The budgeted net income for December is: Multiple Choice $77,500 $137,500 $42,500 $107,500