At the End of Its First Year of Operations, Shapiro's

Multiple Choice

At the end of its first year of operations, Shapiro's Consulting Services reported net income of
$27,000. They also had account balances of: Cash, $16,000; Office Supplies, $3,200; Equipment,
$24,000 and Accounts Receivable, $8,000. The owner's total investment for this first year was
$15,000 and the owner withdrew $2,000 for personal use.
What are the total liabilities of Shapiro's Consulting Services at the end of the first year of operations?

A) $24,200
B) $11,200
C) $42,000
D) $27,000