The financial records of Crimson Peak Ltd. for the period ending October 31, 2024, show the following balances:

Capital Account: $350,000 (Credit)
 Drawings: $30,000 (Debit)
 Sales: $600,000 (Credit)
 Purchases: $270,000 (Debit)
 Wages: $70,000 (Debit)
 Utilities: $18,000 (Debit)
 Rent: $20,000 (Debit)
 Miscellaneous Expenses: $7,000 (Debit)
 Profit and Loss: $14,000 (Credit)

Requirements:

1. Calculate the total debits and credits.
2. Compute the net income.
3. Evaluate the effect of miscellaneous expenses on overall financial performance.
4. Suggest measures to improve net income.