Jeremy, a senior accountant, is preparing the income statement for the manufacturing business for which he works. After considering all revenues and expenses, Jeremy has concluded that his employer (firm) has made a net profit of $20,000. What effect will this have on the balance sheet that Jeremy is about to prepare next?

A. The amount will be added to the business long-term liabilities. B. The amount will be subtracted from the business fixed assets. C. The amount will be added to the business owners equity. D. The amount will be deducted from the business owners equity. E. The amount will be added to the fixed assets.