Question: Please explain the correct approach for solving with financial accounting question Phoenix Advisory Group started the year with total assets of $320,000 and total liabilities

Please explain the correct approach for solving with financial accounting question

Phoenix Advisory Group started the year with total assets of $320,000 and total liabilities of $110,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $240,000 and $160,000, respectively. During the year, there were no new capital contributions, and the owner withdrew $45,000. Calculate Phoenix's net income for the year. a. $80,000 b. $240,000 c. $160,000 d. $35,000

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