1. The income statement shows the financial position of a business on a specific date.
2. Risk is the uncertainty about the return we will earn.
3. On January 1 of the current year, Jimmy's Sandwich Company reported owner's capital totaling $127,500. During the current year, total revenues were $105,000 while total expenses were $94,500. Also, during the current year Jimmy withdrew $29,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $205,000, the change in owner's capital during the year was: