The company had the following assets and liabilities on the dates indicated.
December 31 Total Assets Total Liabilities
2013 $400,000 $250,000
2014 $460,000 $300,000
2015 $590,000 $400,000
The business began on January 1, 2013, with an investment of $100,000.
Instructions:
From an analysis of the change in owner's equity during the year, compute the net income (or loss) for:
a) 2013, assuming drawings were $15,000 for the year.
b) 2014, assuming it made an additional investment of $45,000 and had no drawings.
c) 2015, assuming it made an additional investment of $15,000 and had drawings of $25,000 in 2015.