During 2016, Tranquil Waters Spa reported revenue of $20,000. Total expenses for the year were $5,000. Tranquil Waters Spa ended the year with total assets of $31,000, and it owed debts totaling $8,000. At year- end 2015, the business reported total assets of $16,000 and total liabilities of $8,000. 1. Compute Tranquil Waters Spa's net income for 2016. 2. Did Tranquil Waters Spa's owner's equity increase or decrease during 2016? By how much?

During 2016, Tranquil Waters Spa reported revenue of $20,000. Total expenses for the year were $5,000. Tranquil Waters Spa ended the year with total assets of $31,000, and it owed debts totaling $8,000. At year- end 2015, the business reported total assets of $16,000 and total liabilities of $8,000. 1. Compute Tranquil Waters Spa's net income for 2016. 2. Did Tranquil Waters Spa's owner's equity increase or decrease during 2016? By how much?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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