Whitney Corporation
Whitney Corporation,a Reseller of Women's Fashions,has Budgeted Its $\$ 550,000$

Whitney Corporation
Whitney Corporation,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. Merchandise inventory on F ebruary 28 is $\$ 300,000$
III. Buclgeted depreciation for March is $\$ 35,000$ .
IV. Cash in bank on March 1 is $\$ 25,000$ .
V. Selling and administrative expenses are buclgeted 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 sales price. All purchases are paid for in cash
Refer to Whitney Corporation.The budgeted net income for March is:

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