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The following information is from a new business. Liabilities Owner's Equity Assets End of Year 1 $250,000 $122,000 End of Year 2 292,000 154,000
The following information is from a new business. Liabilities Owner's Equity Assets End of Year 1 $250,000 $122,000 End of Year 2 292,000 154,000 End of Year 3 216,000 85,100 $128,000 138,000 130,900 Comment on the year-to-year changes in the accounts and possible sources and uses of funds (how were the funds obtained and used). End of Year 1: Asset increase of $250,000 financed by increase of s 122,000 and combination of net income and net owner investments of $128,000. End of Year 2: Asset increase of s net income and net owner investments of S X financed by increase x. of s X and combination of End of Year 3: Assets of X used to reduce EV X of liabilities. Company also had combination of net loss and net withdrawals of $ X (or small net income offset by large withdrawals).
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