Marianne's Massage Services Ltd. (MMS) entered into the following transactions during April: - Received $16,000 cash for a contract that MMS will start to work on in May. - Purchased a one-year fire insurance policy for $2,400 cash. The cost of insurance for April is $200. - Purchased computer software for $2,400 cash. The computer software is expected to last two years. Depreciation expense for April is $100. - Sold services for $22,000. $15,000 cash was received at time of sale. The remaining $7.000 of services were sold on account. - Agreed to pay a newspaper $500 to run a sales promotion for MMS in April. MMS paid the $500 in May. - Purchased $10,800 of equipment on account. The equipment is expected to last three years. Depreciation expense for April is $300. - Collected $4,000 of its accounts receivable. - Paid $7,000 of its accounts payable. - Paid salaries of $6,000 to its employees for work carried out in April. - Earned revenue of $2.000 that was collected in advance in March. If MMS prepares its financial statements using the cash basis, what will be its net income for the month of April? $16,700 $16.900 $17.200 $19.200 Marianne's Massage Services Ltd. (MMS) entered into the following transactions during April: - Received $16,000 cash for a contract that MMS will start to work on in May. - Purchased a one-year fire insurance policy for $2,400 cash. The cost of insurance for April is $200. - Purchased computer software for $2,400 cash. The computer software is expected to last two years. Depreciation expense for April is $100. - Sold services for $22,000. $15,000 cash was received at time of sale. The remaining $7.000 of services were sold on account. - Agreed to pay a newspaper $500 to run a sales promotion for MMS in April. MMS paid the $500 in May. - Purchased $10,800 of equipment on account. The equipment is expected to last three years. Depreciation expense for April is $300. - Collected $4,000 of its accounts receivable. - Paid $7,000 of its accounts payable. - Paid salaries of $6,000 to its employees for work carried out in April. - Earned revenue of $2.000 that was collected in advance in March. If MMS prepares its financial statements using the cash basis, what will be its net income for the month of April? $16,700 $16.900 $17.200 $19.200