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

■ writing assignment Rebecca Smith, your best friend, is considering making an investment in Advantage Specialties, Inc. Rebecca seeks your advice in interpreting the company’s 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 Rebecca’s questions. In your note, state the amounts of Advantage Specialties’ total assets, total liabilities, and net income or net loss for the year. Also show how you computed each amount.