Response to the following problem:
Oracle Web Sites started 20X4 with total assets of $25,000 and total liabilities of $11,000. At the end of 20X4, Oracle's total assets stood at $31,000, and total liabilities were $14,000.
Required:
1. Did the owner's equity of Oracle increase or decrease during 20X4? By how much?
2. Identify two possible reasons for the change in owner's equity during the year.