(Learning Objective 4: Analyzing a trial balance) The trial balance of Luxury Specialties, Inc., follows.

■ writing assignment All of the A and B problems can be found within MyAccountingLab, an online homework and practice environment. Your instructor may ask you to complete these problems using MyAccountingLab.

Ashley Richards, your best friend, is considering investing in Luxury Specialties, Inc. Ashley seeks your advice in interpreting this information. Specifi cally, she asks how to use this trial balance to compute the company’s total assets, total liabilities, and net income or net loss for the year.

❙ Requirement 1. Write a short note to answer Ashley’s questions. In your note, state the amounts of Luxury Specialties’ total assets, total liabilities, and net income or net loss for the year.
Also show how you computed each amount.