During

$20162016,$

Serenity CreekSerenity$$Creek

Spa reported revenue of

$ $55$ comma $000$$$55,000.$

Total expenses for the year were

$ $50$ comma $000$$$50,000.$

Serenity CreekSerenity$$Creek

Spa ended the year with total assets of

$ $21$ comma $000$$$21,000,$

and it owed debts totaling

$ $8$ comma $000$$$8,000.$

At$$year$-$end

$20152015,$

the business reported total assets of

$ $16$ comma $000$$$16,000$

and total liabilities of

$ $8$ comma $000$$$8,000.$

Requirements

$1.$ Compute

Serenity CreekSerenity$$Creek

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

$20162016.$

$2.$ Did

Serenity CreekSerenity$$Creek

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

$20162016?$

By how$$much$?$

Question content area bottom

Part $1$

Requirement $1.$ Compute

Serenity CreekSerenity$$Creek

$$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

$$

$-$

$$

$=$

$$

Part $2$

Requirement $2.$ Did

Serenity CreekSerenity$$Creek

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

$20162016?$

By how$$much$?$

Serenity CreekSerenity$$Creek

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

$$

$$

decreased

increased

during the year by

$$$enter your response here.