The Adams Company, a merchandising firm, has budgeted its activity for December according to the following information:

• Sales were at $450,000, all for cash.
• Merchandise inventory on November 31 was $200,000.
• The cash balance on December 1 was $18,000.
• Selling and administrative expenses are budgeted at $60,000 for December and are paid for in cash.
• Budgeted depreciation for December is $25,000.
• The planned merchandise inventory on December 30 is $230,000.
• The cost of goods sold is 70% of the selling price.
• All purchases are paid for in cash.

20. The budgeted net income for December is

A. $135,000.
B. $68,000.
C. $50,000.
D. $75,000.