Amoco Auto Service started 2016 with total assets of $21,000 and total liabilities of $10,000.

Business Finance

Amoco Auto Service started 2016 with total assets of $21,000 and total liabilities of $10,000. At the end of 2016, Amoco’s total assets stood at $25,000 and total liabilities were $11,000. 1) Did the owner’s equity of Ampco Auto Service increase or decrease during 2016? By how much? 2) Identify the four possible reasons that owner’s equity can change.