Net Income from Total Assets and Liabilities?
I'm very confused. Here's the question:
Total Assets as of May 31, 2010 = $174,000
Total Liabilities as of May 31, 2010 = $104,000
Total Assets as of June 30, 2010 = $208,000
Total Liabilities as of June 30, 2010 = $127,000
Following are 3 situations about owner's investments and withdrawals from the business during June. For each situation, compute the amount of net income or net loss during June 2010.
a.) the owner invested $5,000 and made no withdrawals.
b.) the owner invested nothing and made $14,000 of withdrawals.
c.) the owner invested $15,000 and made $28,000 of withdrawals.
I have absolutely no clue how to go about this! Please help!