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		5,140
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.

$1,180.

$4,120.

$4,700.

$10,880.

$5,780.