Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 56

Net income and owner's withdrawals
The income statement of a proprietorship for the month of February indicates a net income of $17,500. During the same period, the owner withdrew $25,500 in cash from the business for personal use. Would it be correct to say that the business had incurred a net loss of $8,000 during the month Discuss.