Winterbotham Corporation provided the following listing of financial statement elements and their respective balances. The periodic amounts relate to the year ending December 31, 20X5, and the point-in-time amounts reflect balances as of December 31, 20X5, unless otherwise implied. Unfortunately, the company has been unable to locate its listing of assets, but all other information is incomplete, albeit in disarray.

(a) Determine Winterbotham’s net income for the year ending December 31, 20X5.

(b) How much are total assets of the company, as of December 31, 20X5?

(c) If you were told that assets included an accounts receivable of $5,000 for services provided during 20X5, and that such transactions had been excluded in calculating the given “revenue” amount, how would this influence your answer to part (a) above?

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Capital stock $250,000 Utilities expense 11,000 Wage expense 40,000 Accounts payable 12,500 Revenue 80,000 Dividends 2,500 Rent expense 22,000 Notes payable 50,000 Beginning retained earnings 89,000