Anthony’s Consulting, Inc. started business in 2013 with total assets of $32,000 and total liabilities of $14,000. At the end of 2013, Anthony’s total assets were $42,000 and total liabilities were $18,500.
After analyzing the data, answer the following questions:
1. What was the amount of the increase or decrease in shareholders’ equity?
2. Identify two possible reasons for the change in shareholders’ equity during the year.