During the month, Lathers Co. received $400,000 in cash and paid out $290,000 in cash. (a) Do

Question:

During the month, Lathers Co. received $400,000 in cash and paid out $290,000 in cash.
(a) Do the data indicate that Lathers Co. had net income of $110,000 during the month? Explain.
(b) If the balance of the cash account is $185,000 at the end of the month, what was the cash balance at the beginning of the month?