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View Full Version : How do you find net income when you're given assets and liabilities


courtneyledezma
Nov 15, 2012, 09:38 PM
I am given total assets = $400,000 and total liabilities = $250,000. I am also given the initial investment which = $100,000 and drawings which was $15,000. My question is, From an analysis of the change in owner's equity during the year, compute the net income (or loss)

paraclete
Nov 16, 2012, 06:24 AM
we have answered this many times

assets - liabilities = equity

equity is made up of capital, retained earnings and dividends paid