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On January 1, 2021 Company XYZ had assets of $100,000 and no liabilities. During 2021 XYZ recorded revenues of $150,000 and had a profit margin of 30 percent. What was the company's net income in 2020? Please show work or explanation for all questions, except if indicated otherwise.
Problem 1: What was the beginning equity? No need to show work for this question.
Problem 2: What was ending equity?
Problem 3: What was return on beginning equity (in class we always used average equity, but you should be able to answer this question)?
Problem 4: In 2022 the company had the same sales and profit-margin. What was ending equity?
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