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Textbook Question
Chapter 1, Problem E1.23E

Using the accounting equation

Learning Objective 3

During 2018, Flowing Rivers Spa reported revenue of 530,000. Total expenses for the year were $15,000. Flowing Rivers Spa ended the year with total assets of $43,000, and it owed debts totaling $14,000. At year-end 2017, the business reported total assets of $28,000 and total liabilities of $14,000.

Requirements

1 Compute Flowing Rivers Spa's net income for 2018.

2. Did Flowing Rivers Spa's owner's equity increase or decrease during 2018? By how much?

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Chapter 1 Solutions

Horngren's Accounting - Acc122: Accounting Principles 1- Third Custom Edition For Borough Of Manhattan Community College

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