1. Carlton Company had assets of $280,000 and liabilities of $120,000 at the beginning of the year, and assets of $400,000 and liabilities of $140,000 at the end of the year. During the year, the owner invested an additional $40,000 in the business, and the company made withdrawals of $48,000. What amount of net income did the company earn during the year?

2. Use the following accounts and balances to prepare a balance sheet with the accounts in proper order for Global Company at June 30, 2010,

Accounts Receivable- 1,600$

Wages Payable- 700$

Owner’s Capital- 28,700$

Building- 22,000$

Cash- ?