A new business starts with the following funding: $200,000 in cash. It then buys equipment of $70,000. Takes a loan for $25,000. Purchases inventory of $40,000 and sells $27,000 of the inventory. Based on the above information what was the original owner’s equity? What is the owner’s equity after all of the stated transactions? What would the owner’s equity be if the remainder of inventory is sold and the loan paid off in full?
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