Can you please assist?

Accounting I.

During 2016, Tranquil Waters Spa reported revenue of $20,000. Total expenses for the year were $ 13,000. Tranquil Waters Spa ended the year with total assets of $ 27,000, and it owed debts totaling $ 10,000. At year-end 2015, the business reported total assets of $ 20,000 and total liabilities of $ 10,000.

Requirements:

1. Compute Tranquil Waters Spa's net income for 2016.

(REVENUE - EXPENSES = NET INCOME)

_______________ - _______________ = ___________________

2. Did Tranquil Waters Spa's owner equity increase or decrease during 2016? By how much?

Tranquil Waters Spa's equity (decrease or increase) during the year by $ _________________