During $2025,$ Tranquil Rivers Spa reported revenue of $$50,000.$ Total expenses for the year were $$40,000.$ Tranquil Rivers Spa ended the year with total assets of $$32,000,$ and it

owed debts totaling $$11,000.$ At year$-$end $2024,$ the business reported total assets of $$22,000$ and total liabilities of $$11,000.$

Requirements

Compute Tranquil Rivers Spa's net income for $2025.$

Did Tranquil Rivers Spa's stockholders' equity increase or decrease during $2025?$ By how much?

Requirement $1.$ Compute Tranquil Rivers Spa's net income for $2025.$

Identify the formula and enter the amounts to determine net income.

$=$

Net Income

$-$

$=$