FundRobot » Investments » net income with only assets and liabilities?

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Old   #1 (permalink)
 
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Default net income with only assets and liabilities

Please help me figure this out

Andruw began business on January 1, 2011, with an investment of $92,631.

Compute the net income for 2011, assuming Andruw’s drawings were $19,946 for the year.

Total assets $496,985

Total liabilities $292,139

Please show me how you got the answer as this is just a practice problem and I have 10 problems to do myself

Thanks so much

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Old   #2 (permalink)
 
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Default net income with only assets and liabilities

Assets - liabilities = equity. Compute that number.

There was no beginning equity, so the only transactions during the year were the initial investment, net income, and drawings.

Take the ending equity, subtract the initial investment and add back the drawings to get the net income.
Owner101 is offline   Reply With Quote
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