Healy Corporation recorded service revenues of $100,000 in 2018, of which $70,000 were for credit and $30,000 were for cash. Moreover, of the $70,000 credit sales, it collected $20,000 cash on those receivables before year-end. The company also paid $60,000 cash for 2018 wages.

a. Compute the company's net income for 2018.

b. Suppose you discover that employees had earned an additional $10,000 in wages in 2018, but this amount had not been paid. Would 2018 net income change? If so, by how much?