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Q. The total assets and total liabilities of Paul’s Pools, a proprietorship, at the beginning and at the end of the current fiscal year are as follows:Jan. 1 Dec. 31 Total assets $280,000 $475,000 Total liabilities 205,000 130,000 (a) Find out the amount of net income earned during the year. The owner did not invest any additional assets in the business during the year and made no withdrawals. (b) Find out the amount of net income during the year. The assets and liabilities at the beginning and at the end of the year are unchanged from the amounts presented above. Explain however the owner withdrew $53,000 in cash during the year (no additional investments). (c) Find out the amount of net income earned during the year. The assets and liabilities at the beginning and at the end of the year are unchanged from the amounts presented above. Explain however the owner invested an additional $35,000 in cash in the business in June of the current fiscal year (no withdrawals). (d) Find out the amount of net income earned during the year. The assets and liabilities at the beginning and at the end of the year are unchanged from the amounts presented above. Explain however the owner invested an additional $12,000 in cash in August of the current fiscal year and made twelve monthly cash withdrawals of $1,500 each during the year.
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