Al shea is the sole owner and operator of saw tooth company. at the end of its accounting period, december 31, 2005, sawtooth company has assets of $925,000 and liabilities of $285,000. during 2006, al shea invested an additional $50,000 and withdrew $30,000 from the business. what is the amount of net income during 2006, assuming that as of december 31, 2006 net assets were $980,000 and liabilities were $225,000?

amount of net income during 2006 is $65000

Step-by-step explanation:

Given data

assets in 2005 =  $925,000

liabilities in 2005 =  $285,000

invested an additional $50,000

withdrew $30,000

assets in 2006=  $980,000

and liabilities in 2006 =  $225,000?

to find out

amount of net income during 2006

solution

in 2005

assets =  $925,000

liabilities =  $285,000

so stock holder equity = $640000

and in 2006

assets =  $980,000

and liabilities  =  $225,000

so stock holder equity = $725000

so retaining earning for both year is $725000 - $640000 i.e $85000

so net income = retaining earning + withdrew - investment

net income = $85000 + $30,000 -  $50,000

net income = $65000

amount of net income during 2006 is $65000

50- 250 is correct i did that one too

step-by-step explanation:

if i put something wrong your not gonna like it so rather not say nothing.