The trial balance of Dorman Specialties, Inc., follows.

Abby Ricardo, your best friend, is considering investing in Dorman Specialties, Inc. Abby seeks your advice in interpreting this information. Specifically, she asks how to use this trial balance to compute the company€™s total assets, total liabilities, and net income or net loss for the year.

Requirement
Write a short note to answer Abby€™s questions. In your note, state the amounts of Dorman Specialties€™ total assets, total liabilities, and net income or net loss for the year. Also show how you computed eachamount.

Transcribed Image Text:

Dorman Specialties, Inc. Trial Balance December 31, 2012 S 20,000 Accounts receivable Prepaid expenses 3 1 Accounts payable Note payable Common stock $102,000 Advertising expense $581,000 $581,000