Accounts Receivable	$20,000
Cost of Goods Sold	95,000
Utilities Expense	3,500
Accounts Payable	7,000
Common Stock	100,000
Rent Expense	5,500
Advertising Expense	9,000
Dividends	10,000
Insurance Expense	2,000
Note Payable (due 2014)	50,000
Depreciation Expense	10,000
Prepaid Insurance	18,000
Accumulated Depreciation	30,000
Retained Earnings (beginning)	33,000
Salaries Expense	40,000
Salaries Payable	4,500
Net sales	170,000
Supplies	3,000
Supplies Expense	2,500

Instructions

(a) Calculate the net income. (18 points)