The year-end balance sheet of Orange Company reported assets of $10,000, liabilities of $3,000, and equity of $7,000. The income statement for the year reported revenue of $9,000 and expenses of $6,000. Which of the following statements is correct, assuming no other changes during the year? The balance in equity at the beginning of the period was $4,000. Net income of $3,000 has not yet been collected and is not included in the balance sheet. The accounting equation is out of balance because total equity and net income are not the same. Cash generated during the period was $7,000.