At the end of 2003, Morgan Systems, Inc., had a fire that destroyed the majority of its accounting records. Morgan Systems, Inc., was able to gather the following financial information for 2003.

a. Retained earnings was changed only as a result of net income and a $50,000 dividend 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. Increase or (Decrease) CASTES eruse ste Gace rors eihagor eet est Lore nae ee ROE RE ek een $ 25,000 Interest@ receivables c% Bates er ae 1 eR a eet i oe orn eee ee NO ee (15,000) AVE NTORY are nig ct mgr slats. ess dvowsate, sdlave. cat taste else ee ace a ee Roa tne Te 100,000 Accountssreceivablewi ive in, S20. Aaa RGN BAUR, eck onan see ae nee (22,500) BUtlGitieied.. OR, Rete eRe So ALS OEE Oo SSRN Reames ioPeae cue cia, cries cachet ee 315,000 Accounts payable. 54.00, UL RR eed PRPs Pe i es oe naan 45,000 Mortgagevpavalble no. oi. she cuted sen cangh sien eT RR rts ak cay ee 275,000 Wages pavable:s & ta cs, ca leun otal oi ene ae ee oe Oe ee (27,250) Capital stocks succes & cha See ois leer oA eeaeear munis ic) calorie ae ten 52,500 Using the accounting equation, compute Morgan’s net income for 2003.