The Following Information Comes from the Records of Morton Corporation

question 23

Essay

The following information comes from the records of Morton Corporation.Assume no additional investment by owners when answering the following questions:
A) What is the amount of owners' equity at January 1, 2014? __________________
B) What is the amount of liabilities at December 31, 2014? __________________
C) Assume that the company declared and paid dividends of $22,000 during the year.How much net income did it earn during the year?
D) Assume that the company paid no dividends during the year.Without looking at the income statement, how can you tell if the company is profitable or not?

• A) What is the amount of owners' equity at January 1, 2014? __________________
• B) What is the amount of liabilities at December 31, 2014? __________________
• C) Assume that the company declared and paid dividends of $22,000 during the year.How much net income did it earn during the year?
• D) Assume that the company paid no dividends during the year.Without looking at the income statement, how can you tell if the company is profitable or not?

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