Smiles Entertainment had the following accounts and balances at December 31:

Account	Debit			Credit
Cash	$	10,400
Accounts Receivable		2,080
Prepaid Insurance		2,560
Supplies		1,080
Accounts Payable				$	5,200
Common Stock					4,200
Retained Earnings					940
Service Revenue					7,400
Salaries Expense		540
Utilities Expense		1,080
Totals	$	17,740		$	17,740

Using the information in the table, calculate the company's reported net income for the period.

Multiple Choice

• $1,180.

• $10,880.

• $5,780.

• $4,120.

• $4,660.