Area: Relationships of the Balance Sheet and Income Statement

1. The total assets and total liabilities of BubbleT Cafe, a proprietorship, at the beginning and at the end of the current fiscal year are as follows:

Jan. 1 Dec. 31

Total assets $280,000 $475,000

Total liabilities 205,000 130,000

Determine the amount of net income earned during the year. The owner did not invest any additional assets in the business during the year and made no withdrawals.