Davis company reported net income of $40,000. john davis, the owner, withdrew $10,000 for personal use. how and by what amount will capital change?

I believe that the capital will decrease by $10000. Capital is the financial value of assets in a business such us funds in deposits account, machinery, production equipment such as manufacturing facilities among others. The money withdrawn from a business by the owner for personal use is called the withdrawal. Withdrawals reduces the amount of capital in business or the equity in the company.

Oh yeah yeah the answer is oh yeah yeah