Assume that a merchandising company provided the following beginning and ending budgeted balance sheets for a forthcoming month:

Beginning Balances Ending Balances

Cash $ $30,000$ $ $38,000$

Accounts receivable $13,00016,000$

Inventory $20,00018,000$

Buildings and equipment $100,000100,000$

Accumulated depreciation $(25,000)(30,000)$

Total assets $ $138,000$ $ $142,000$

Accounts payable $ $4,000$ $ $5,000$

Common stock $60,00060,000$

Retained earnings $74,00077,000$

Total liabilities and stockholders$$ equity $ $138,000$ $ $142,000$

Assuming the company did not pay any dividends during the period, how much net income must be shown on the company$$s budgeted income statement?

Multiple Choice

$$4,000$

$$5,000$

$$3,000$