Purchase Solution

Calculation of net profit by analyzing changes to assets and liabilities.

Not what you're looking for?

Ask Custom Question

ABC Company reports the following balance sheet information for 1997:

1 January 1997
Assets: $60,000
Liabilities: $12,000

31 December 1997
Assets: $70,000
Liabilities: $14,000

Assume that new investments made by owners during 1997 were $3,000 and that withdrawals were $12,000. Find the net profit for 1997.

Purchase this Solution

Solution Summary

The solution explains the calculations that are needed to derive net income, and shows the answer computed.

Solution Preview

Step 1
Calculate owner's equity at 1 Jan 1997

Assets = Owner's Equity + Liabilities
OE = A - L
OE = $60,000 ...

Purchase this Solution

Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Introduction to Finance

This quiz test introductory finance topics.