Q1-49. Rainbow Corporation began the year with cash of $32,000 and other assets that totalled

$22,000. During the year Rainbow earned sales revenue of $133,000 and had the following expenses:

salaries: $56,000; rent: $10,000; and utilities: $5,000. At year-end Rainbow’s cash balance was down to $20,000. How much net income (or net loss) did Rainbow experience for the year?

a. ($62,000)

c. $20,000

b. $12,000

d. $43,200