Mize Company provided $45,500 of services on account, and collected $38,000 from customers during the year. The company also incurred $37,000 of expenses on account, and paid $32,400 against its payables. Which of the following statements about the result of these events is true?

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Total assets would increase because accounts receivable would increase by $45,500 and cash would increase by $38,000. Total liabilities would increase because accounts payable would increase by $37,000. Total stockholders' equity would increase because net income would increase by $10,100 ($45,500 - $37,000 - $32,400 + $38,000).

Mize Company Provided $45,500 of Services on Account, and Collected