Answer:
$88,000
Explanation:
The computation of the ending equity is shown below:
= Beginning balance of equity + net income - withdrawals by owners
= $72,000 + $25,000 - $9,000
= $88,000
The net income is computed below:
= Revenues - expenses
= $90,000 - $65,000
= $25,000
To find out the ending equity we added the net income and deduct the withdrawn amount to the beginning equity
