Using the accounting equation During 2018, Flowing Rivers Spa reported revenue of $30,000. Total expenses for the year were $15,000. Rowing Rivers Spa ended the year with total assets of $43,000, and it owed debts totaling $14,000. At year-end 2017, the business reported total assets of $28,000 and total liabilities of $14,000. Requirements Compute Flowing Rivers Spa’s net income for 2018. Did Flowing Rivers Spa’s stockholders’ equity increase or decrease during 2018? By how much?
Using the accounting equation During 2018, Flowing Rivers Spa reported revenue of $30,000. Total expenses for the year were $15,000. Rowing Rivers Spa ended the year with total assets of $43,000, and it owed debts totaling $14,000. At year-end 2017, the business reported total assets of $28,000 and total liabilities of $14,000. Requirements Compute Flowing Rivers Spa’s net income for 2018. Did Flowing Rivers Spa’s stockholders’ equity increase or decrease during 2018? By how much?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using the
During 2018, Flowing Rivers Spa reported revenue of $30,000. Total expenses for the year were $15,000. Rowing Rivers Spa ended the year with total assets of $43,000, and it owed debts totaling $14,000. At year-end 2017, the business reported total assets of $28,000 and total liabilities of $14,000.
Requirements
- Compute Flowing Rivers Spa’s net income for 2018.
- Did Flowing Rivers Spa’s
stockholders’ equity increase or decrease during 2018? By how much?
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