Financial Capital Maintenance
The company had the following total asset and total liability balances at the beginning and the end of the year:
|
|
Beginning |
Ending |
|
Total assets |
$400,000 |
$625,000 |
|
Total liabilities |
230,000 |
280,000 |
During the year, the company received $100,000 in new investment funds contributed by the owners. Using the financial capital maintenance concept, determine the company’s income for the year.