The owner of Archer Communications, Nancy Archer, is selling the business. She offers the trial balance shown on the next page to prospective buyers.

Your best friend is considering buying Archer Communications. He seeks your advice in interpreting this information. Specifically, he asks whether this trial balance is the same as a balance sheet and an income statement. He also wonders whether Archer Communications is a sound company because all the accounts are in balance.
Required
Write a short note to answer your friend's questions. To aid his decision, state how he can use the information on the trial balance to compute Archer Communications' net income or net loss for the current period. State the amount of net income or net loss in your note.

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ARCHER COMMUNICATIONS Trial Balance December 31, 2014 $ 28,000 Cash Accounts receivable 30,500 Prepaid expenses 6,000 64,000 Land $ 62,500 Accounts payable Note payable N. Archer, capital N. Archer, withdrawals 38,000 45,000 72,000 151,000 Service revenue 4,500 39,000 10,500 Advertising expense Rent expense Supplies expense Wages expense 42,000 $296,500 Totals $296,500