X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of January:

January 1 balance sheet

Assets		Equities
Cash	$54721	Accounts Payable	$59822
Accounts Receivable	34897	Wages payable	1482
Inventory	82325	Notes pasyable	32950
Prepaid Rent	5343	Paid in Capital	243308
Equipment	227347	Rentained Earning	67071
Total Assets	404633	Total equities	404633

The following summary transactions occurred during January:

1. Sold stock to investors for $40,000.

2. Borrowed $23,000 from a bank.

3. Bought merchandise from suppliers, paying $3,037 and promising to pay $5,943 next month.

4. Bought equipment from a manufacturer, paying $38,700 and promising to pay $4,700 in three months.

5. Paid $4,726 to merchandise suppliers that it had promised to pay.

6. Sold merchandise, receiving $18,000 cash and promises to pay of $4,100; the merchandise that was sold previously cost $11,050.

7. Paid a total of $517 for rent and insurance in advance.

8. Received $2,985 from customers who had promised to pay.

9. Paid $5,890 for wages, utilties, and other miscellaneous expenses.

QUESTIONS:

1. What were total equities on January 31?

2. What was net income in January?