The net income for December would be:

a. $21,900

b. $17,100

c. $26,300

d. $40,700

Corver Lumbet sells lumbet and general buliding supplies to buliding contractors in a medium-sized town in Montana. Data regarding the store's operatians follow - Sales are budgeted at $364,000 for Novembec, $334,000 for December, and $314,000 for January - Collections are expected to be 90 s in the month of sole and 10% in the month following the sale. - The cost of goods sold is 80% of sales. - The company desires to have an ending merchandise inventory equal to 50% of the following month's cost of goods scld. Payment for merchandise is made in the minti tollowing the purchese - Other monthly expenses to be paid in cash are $26,100. - Monthly depreciation is $18,800. - Ignore taxes