XYZ Farm Supply data regarding the store's operations follow:
• Sales are budgeted at $480,000 for November, $430,000 for December, and $340,000 for January.
• Collections are expected to be 65% in the month of sale, 35% in the month following the sale.
• The cost of goods sold is 77% of sales.
• The company purchases 52% of its merchandise in the month prior to the month of sale and 48% in the month of sale. Payment for merchandise is made in the month following the purchase.
• Monthly selling & administrative expenses to be paid in cash are $20,900.
• Monthly depreciation is $21,700.
• Ignore taxes.
The net income for December would be:
A) $37,300
B) $56,300
C) $51,700
D) $35,300