Blue Ridge Enterprises presents the following balances as of July 31, 2024. Calculate the net income.

• Capital Account: $300,000 (Credit)
• Drawings: $20,000 (Debit)
• Sales: $520,000 (Credit)
• Purchases: $240,000 (Debit)
• Wages: $60,000 (Debit)
• Utilities: $14,000 (Debit)
• Rent: $22,000 (Debit)
• Miscellaneous Expenses: $8,000 (Debit)
• Profit and Loss: $12,000 (Credit)

Requirements:

1. Determine total debits and credits.
2. Calculate the net income.
3. Analyze the impact of purchases on net income.
4. Discuss strategies to manage drawings effectively.