Financial information related to Derby Interiors for October and November 2006 is as follows:

a. Prepare balance sheets for Derby Interiors as of October 31 and as of November 30, 2006.
b. Determine the amount of net income for November, assuming that no additional capital stock was issued and no dividends were paid during the month.
c. Determine the amount of net income for November, assuming that no additional capital stock was issued but dividends of $10,000 were paid during themonth.

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October 31, 2006 November 30, 2006 $12,320 27,200 15,000 Accounts payable Accounts receivable Capital stock Retained earnings Cash Supplies $13,280 31,300 15,000 48,000 2,400 81,600 2,000