Financial information related to Montana Interiors for October and November 20Y8 is as follows:

a. Prepare balance sheets for Montana Interiors as of October 31 and as of November 30, 20Y8.

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 $20,000 were paid during the month.

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October 31,20Y8 November 30, 20Y8 Accounts payable Accounts receivable Capital stock Retained earnings Cash Supplies $ 40,000 75,000 60,000 65,000 118,000 60,000 110,000 140,000 15,000 20,000