Dynamic - Answer changes with each attempt (consider an Excel solution)

San Luis Mill and Lumber sells lumber and general building supplies to building contractors in a medium-sized town in California. Data regarding the store's operations follow:

Sales are budgeted at $ 346,497 for November, $ 357,859 for December, and $ 301,327 for January.

• Collections are expected to be 90% in the month of sale and 10% in the month following the sale.
• The cost of goods sold is 70% of sales.
• The company desires to have an ending merchandise inventory equal to 50% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
• Other monthly expenses to be paid in cash are $ 25,366
• Monthly depreciation is $16,609.
• Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 19,600
Accounts receivable	77,400
Inventory	123,200
Property, plant and equipment, net of $503,000 accumulated depreciation	1,004,000
Total assets	$ 1,224,200
Liabilities and Stockholders Equity
Accounts payable	$ 273,000
Common stock	782,000
Retained earnings	169,200
Total liabilities and stockholders equity	$ 1,224,200

The net income for December would be:

Hint: Range is $50,000 to $65,000