Question: During 2016, serenity creek spa reported revenue of $50,000. Total expenses for the year were $35,000. Serenity Creek Spa ended the year with total assets of $31,000, and it owed debts totaling $8,000. At year-end 2015, the business reported total assets of $16,000 and total liabilities of $8,000.
- Compute Serenity Creek Spa’s net income for 2016.
- Did Serenity Creek Spa owner’s equity increase or decrease during 2016? By how much?
Requirement 1: Compute Serenity Creek Spa’s net income for 2016
Begin by identifying the formula to calculate net income and then enter the amounts to solve for net income
Choose 1: – Choose 1: = Net Income
Net Income Net Income
Net Loss Net Loss
Enter the numerical formula and answer here: