A company’s net income appears directly on the income statement and the owner’s equity statement, and it is included indirectly in the company’s balance sheet.” Do you agree? Explain.

In February 2020, Ola Gott invested an additional $12,000 in her
business, Gott’s Pharmacy, which is organized as a proprietorship.
Gott’s accountant, Sal Costa, recorded this receipt as an increase in
cash and revenues. Is this treatment appropriate? Why or why not?

“A company’s net income appears directly on the income statement and the owner’s equity statement, and it is included indirectly in
the company’s balance sheet.” Do you agree? Explain.

. Bayler Enterprises had a capital balance of $186,000 at the beginning of the period. At the end of the accounting period, the capital
balance was $189,000.
a. Assuming no additional investment or withdrawals during the
period, what is the net income for the period?
b. Assuming an additional investment of $13,000 but no withdrawals during the period, what is the net income for the period?