Owner's equity


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Hi I'm new to accounting and it's my elective subject in college. I have a question that I am not sure of and I hope someone is able to assist me.

"Quinlan Company starts the year with $50,000 in assets and $40,000 in liabilities. Profit for the year is $12,500 and no dividends are paid. How much is the owner's equity at the end of the year?"

My attempt to this question is, I took $50,000 - $40,000= $10,000 (the equity at the beginning of the year)

Then i took $10,000 + $12500 = $22,500 (the equity at the end of the year)

I am not sure whether I attempt this correctly. Please assist me. Thank you.
 
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