Hilton Company Hilton Company,a Reseller of Women's Fashions,has Budgeted Its $\$ 300,000$

Hilton Company Hilton Company,a reseller of women's fashions,has budgeted its activity for March.The budget information is presented below:
I. Sales are $550,000. All sales are cash
II. Merchandize inventory on February 28 is $\$ 300,000$
III. Budgeted depreciation for March is $\$ 35,000$ .
IV. Cashin bank on March 1 is $\$ 25,000$ .
V. Selling and administrative expenses are budgeted at $\$ 60,000$ for March and are paid in cash
VI. The planned merchandise inventory on March 31 is $\$ 270,000$ .
VII. The invoice cost for merchandise purchases represents $75 \%$ of salesprice. All purchass are paid for in cash Refer to Hilton Company.The budgeted net income for March is:

A) $107,500
B) $137,500
C) $ 42,500
D) $ 77,500