Task: The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information:
- Sales were at $450,000, all for cash.
- Merchandise inventory on October 31 was $200,000.
- The cash balance on November 1 was $18,000.
- Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.
- Budgeted depreciation for November is $25,000.
- The planned merchandise inventory on November 30 is $230,000.
- The cost of goods sold is 70% of the selling price.
- All purchases are paid for in cash.
The budgeted net income for November is
A. $135,000.
B. $68,000.
C. $50,000.
D. $75,000.