Question

A business has a beginning capital of $3000.the owner makes a contribution of $1000. the net income of $2500 the end capital is $4500. how much was the owner withdraw?A$6500B$2000C$3000D$11000

Answer 1

Step-by-step explanation

Let be x the amount the owner withdrew. Then, we can write and solve the following equation:

`\begin{gathered} \text{ Beginning capital }+\text{ Contribution }+\text{ Net income }-\text{ Owner withdraws }=\text{ End Capital} \\ \text{\$}3,000+\text{\$}1,000+\text{\$}2,500-x=\text{\$}4,500 \\ \text{\$}6,500-x=\text{\$}4,500 \\ \text{ Subtract 6500 from both sides} \\ \text{\$}6,500-x-\text{\$}6,500=\text{\$}4,500-\text{\$}6,500 \\ -x=-\text{\$}2,000 \\ \text{ Multiply by -1 from both sids} \\ -x\cdot-1=-\text{\$}2,000\cdot-1 \\ x=\text{\$}2,000 \end{gathered}`

Answer

The owner withdraws $2,000.