Question is... Dec 31, 2010 total assests 400,000 liabilities 250,000 begin business on jan 2010 with invest of 100,000 with drawings of 15,000 for the year... so how do u get the net income from this?? I am so puzzled please help.

Assets = liabilities + Owners Equity

Owners Equity = Net Income - Dividends or Drawings.

You need to combine the two equations together and solve for net income.

Assets = Liabilities + Owners Equity + Net Income - Dividends.

therefore Net Income = Assets - Liabilities - Owners Equity + Dividends