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    mguidry1's Avatar
    mguidry1 Posts: 1, Reputation: 1
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    #1

    Jun 18, 2014, 07:49 PM
    Net income
    How do I get a net income or net loss when all they give me is assets and liabilities and an investment and a drawings?
    Assets=397,890
    Liabilities= 139,538
    Investments=88,467
    Drawings=20,715
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jun 19, 2014, 10:29 AM
    Not enough information given. You need beginning and ending figures to solve this type of problem.

    The equation to calculate Net income for this type of problem is: Ending Owners Equity = Beginning Owners Equity + Additional Investments + Net Income (Revenues - Expenses) - Drawings

    This equation can be rewritten as: Net Income = Ending Owners Equity - Beginning Owners Equity - Additional Investments + Drawings
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