Blue Water Kayak began operations on January 1, 2016. The owner invested $13,000 during the first year and was able to withdraw cash of $46,500 after a successful first year.
During 2017, the second year of operations, the business reported profit of $178,000, owner withdrawals of $79,500, and no owner investments.
In 2018, the third year, Blue Water Kayak incurred a loss of $5,300. The owner made no withdrawals and no owner investments during this period. At the end of 2018, owner's capital was $123,000.
Required:
Calculate the profit or loss for 2016.
Also, I'm not sure the best way to calculate it? Do I create a transactional analysis?