During

$20162016,$

Gentile BreezeGentile$$Breeze

Spa reported revenue of

$ $45$ comma $000$$$45,000.$

Total expenses for the year were

$ $40$ comma $000$$$40,000.$

Gentile BreezeGentile$$Breeze

Spa ended the year with total assets of

$ $29$ comma $000$$$29,000,$

and it owed debts totaling

$ $12$ comma $000$$$12,000.$

At$$ year$-$end

$20152015,$

the business reported total assets of

$ $24$ comma $000$$$24,000$

and total liabilities of

$ $12$ comma $000$$$12,000.$

Requirements

$1.$ Compute

Gentile BreezeGentile$$Breeze

$$Spa$\text{'}$s net income for

$20162016.$

$2.$ Did

Gentile BreezeGentile$$Breeze

$$Spa$\text{'}$s owner's equity increase or decrease during

$20162016?$

By how$$ much?

Question content area bottom

Part $1$

Requirement $1.$ Compute

Gentile BreezeGentile$$Breeze

$$Spa$\text{'}$s net income for

$20162016.$

Begin by identifying the formula to calculate net income and then enter the amounts to solve for net income.

Revenues

$$

Expenses

$=$

Net Income

$45000$

$-$

$40000$

$=$

$5000$

Part $2$

Requirement $2.$ Did

Gentile BreezeGentile$$Breeze

$$Spa$\text{'}$s owner's equity increase or decrease during

$20162016?$

By how$$ much?

Gentile BreezeGentile$$Breeze

$$Spa$\text{'}$s equity

increased

decreased

increased

during the year by

$$$$70007000.$