What was the net income for the year? The owner's equity in Pinnacle Enterprisesamounted to $55,000 at the beginning of the yearand was $95,000 at the end of the year. The ownerhas withdrawn $12,000 and made no additionalinvestments during the year.What was the net income for the year?

Step 1:First calculate the change in owner's equity: Change in owner's equity = Ending equity -…

Answered: The owner's equity in Pinnacle…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 19P: The Bookbinder Company had 500,000 cumulative operating losses prior to the beginning of last year....

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The owner's equity in Pinnacle Enterprises amounted to $55,000 at the beginning of the year and was $95,000 at the end of the year. The owner has withdrawn $12,000 and made no additional investments during the year. What was the net income for the year?