At the end of 2000, Morgan Systems Inc. had a fire that destroyed a majority of its accounting records. Morgan Systems Inc. was able to gather the following financial information for 2000.

a. Retained earnings was only changed as a result of net income and a $50,000 div- idend payment to Morgan's investors.

b. All other account changes for the year are listed below. The amount of change for each account is shown as a net increase or decrease. Cash Interest receivable Inventory. Accounts receivable. Building.. Accounts payable Mortgage payable Wages payable Capital stock Increase or (Decrease) $ 25,000 (15,000) 100,000 (22,500) 315,000 Using the accounting equation, compute Morgan's net income for 2000. 45,000 275,000 (27,250) 52,500