The Gomez Company, a merchandising firm, does all transactions on a cash basis. The company has budgeted its activity for December according to the following information: - Sales at $500,000, all for cash. - Merchandise Inventory on November 30 was $250,000. - The cash balance at December 1 was $20,000. - Selling and administrative expenses are budgeted at $50,000 for December and are paid for in cash. - Budgeted depreciation for December is $30,000. - The planned merchandise inventory on December 31 is $260,000. - The cost of goods sold represents 75% of the selling price. - All purchases are paid for in cash in the month of purchase. Question The budgeted net income for December is which of the following? $75,000 $45,000 $125,000 $65,000