Nice-n-Fresh Drycleaning showed the following information for its first and second months just ended, March and April of 2014:

*Ed Fresh made a $10,000 investment during March and had withdrawals of $1,000 in March and $25,100 in April.
Required
Use the information provided to complete a statement of changes in equity and a balance sheet for each of March and April 2014.Prepare the statements on a comparative16 basis similar to the statements for Danler Leather and West Jet in Appendix II at the end of the textbook.
Analysis Component:
a. Liabilities increased by $25,200 from March 31, 2014, to April 30, 2014. Review the balance sheet and identify why liabilities increased.
b. Equity increased by $34,400 during March and by $23,400 during April, yet net income was much higher in April. Explain.