Question

The owners equity in a business amounted to $56,000 at the beginning of the year and $100,000 at the end of the year. the owner had made no additional investments and had withdrawn $19,000 during the year. the net income for the year amounted to

Answer 1

Net income = revenue - expenses.

The revenue was $100,000 + $19,000 = $119,000
Expenses was $56,000

$119,000 - $56,000 = $63,000


The net income is $63,000.