Carner Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow:
• Sales are budgeted at $380,000 for November, $370,000 for December, and $350,000 for January.
• Collections are expected to be 83% in the month of sale, 15% in the month following the sale, and 2% uncollectible.
• The cost of goods sold is 71% of sales.
• The company purchases 38% of its merchandise in the month prior to the month of sale and 62% in the month of sale. Payment for merchandise is made in the month following the purchase.
• Other monthly expenses to be paid in cash are $22,900.
• Monthly depreciation is $16,900.
• Ignore taxes.
Statement of Financial Position October 31
Assets
Cash $20,500
Accounts receivable (net of allowance for uncollectible accounts) 83,300
Inventory 102,524
Property, plant and equipment (net of $484,000 accumulated depreciation) 972,000
Total assets $1,178,324
Liabilities and Stockholders' Equity
Accounts payable $269,800
Common stock 795,000
Retained earnings 113,524
Total liabilities and stockholders' equity $1,178,324
what the net income for December would be: