Candy’s Candies started a business in 2012 with total assets of $50,000 and total liabilities of $40,000. At the end of 2012, Candy’s Candies’ total assets were $57,000, and total liabilities were $8,000.
After analyzing the data, answer the following questions:
1. What was the amount of the increase or decrease in stockholders’ equity?
2. Identify two possible reasons for the change in stockholders’ equity during the year.