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

Balance Sheet

January 1

Assets		Equities
Cash	$51,547	Accounts Payable	$57,815
Accounts Receivable	30,149	Wages Payable	1,060
Inventory	84,249	Notes Payable	31,414
Prepaid Rent	6,020	Paid-In Capital	256,618
Equipment	237,280	Retained Earnings	62,338
Total Assets	$409,245	Total Equities	$409,245

The following summary transactions occurred during January:

Sold stock to investors for $45,000.

Borrowed $25,000 from a bank.

Bought merchandise from suppliers, paying $3,539 and promising to pay $5,288 next month.

Bought equipment from a manufacturer, paying $35,600 and promising to pay $4,700 in three months.

Paid $3,565 to merchandise suppliers that it had promised to pay.

Sold merchandise, receiving $17,379 cash and promises to pay of $4,581; the merchandise that was sold previously cost $10,980.

Paid a total of $537 for rent and insurance in advance.

Received $3,287 from customers who had promised to pay.

Paid $5,780 for wages, utilties, and other miscellaneous expenses.

Note: Ignore adjusting entries. 5. What were total equities on January 31? 6. What was net income in January?

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