A Certain Company Began the Year with Total Assets of $10,000,000

question 163

Essay

A certain company began the year with total assets of $10,000,000 and total liabilities of $6,200,000. No additional stock was issued during the year. Use the accounting equation to answer the following questions.
A)What was the amount of Total Assets at the end of the year if Liabilities decreased by $600,000 and Stockholders' Equity increased by $900,000?
B)Was the company profitable? Explain your answer.

• A)What was the amount of Total Assets at the end of the year if Liabilities decreased by $600,000 and Stockholders' Equity increased by $900,000?
• B)Was the company profitable? Explain your answer.