Using the income statement for sentinel travel service shown in practice exercise 1-4b, prepare a statement of owner’s equity for the current year ended august 31, 2014. barb schroeder, the owner, invested an additional $36,000 in the business during the year and withdrew cash of $18,000 for personal use. barb schroeder, capital as of september 1, 2013, was $380,000.

Explanation:

The computation of owner equity for the current year is shown below:

= Capital as of September 2013 1 + Additional investment - drawings

where,

September capital is $380,000

Additional investment is $36,000

And, the drawings is $18,000

Now put these values to the above formula

= $380,000 + $36,000 - $18,000

= $398,000

Here, drawings means the cash which is withdrawn for personal use.

The statement of owner equity is given in the attachment.

d. low interest rates

answernaturalistic observation;