Net income (net loss), owner withdrawals, and owner investment cause equity to change. We also know that revenues less expenses equals net income (loss). Using the following information, calculate net income (loss) for each independent situation.
a. The business earned revenues of $516,000 and had expenses of $492,000.
b. The business showed expenses of $240,000 and revenues of $165,000.
c. The equity at the beginning of the month was $32,000. During the month, the owner made no investments or withdrawals. At the end of the month, equity totalled $86,000.
d. The equity at the beginning of the month was $48,000. During the month, the owner made an investment of $40,000 but made no withdrawals. Equity at the end of the month totalled $52,000.