Final answer:
The statement of owner's equity displays the changes in the owner's stake in a company, including contributions, withdrawals, and the business's profits or losses.
Step-by-step explanation:
The purpose of the statement of owner's equity is to show changes in the owner's investment in a company over a period of time.
This financial statement details the owner's capital at the beginning of the period, adds net income or subtracts net loss, accounts for any additional investments, and subtracts any withdrawals made by the owner.
By doing so, it reflects the net changes in the owner's equity, giving stakeholders an overview of how the owner's stake is being managed and modified.