The Balances for the Accounts of Lance's Consulting Firm,Inc Calculate Net Income

question 1

Short Answer

The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance.
$$\begin{array} { l r l r } \text { Accounts payable } & \$ 6,400 & \text { Wages expense } & \$ 35,000 \\\text { Accounts receivable } & 7,000 & \text { Rent expense } & 5,000 \\\text { Cash } & 10,000 & \text { Retained earnings } & 68,700 \\\text { Office supplies } & 1,000 & \text { Land } & 53,000 \\\text { Building } & 99,000 & \text { Unearned revenue } & 7,000 \\\text { Supplies expense } & 15,000 & \text { Dividends } & 20,000 \\\text { Consulting revenue } & 150,000 & \text { Common stock } & 12,900\end{array}$$
Calculate net income.

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Definitions:

Pro Forma

Financial statements prepared using assumed or projected figures for future periods, often used in planning and decision-making.

Debt-Equity Ratio

An indicator showing the financing proportions of debt and equity used by a company for its assets.

Pro Forma

Pro Forma refers to financial statements or projections that are based on assumptions and estimates, often used to predict future financial performance.

Macroeconomic

Relating to the study of the behavior of the economy as a whole, including inflation, unemployment, and economic growth.