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