Carroll Corporation Began the Year with Total Assets of $800,000

question 112

Essay

Carroll Corporation began the year with total assets of $800,000 and total liabilities of $620,000.Use the accounting equation to answer the following questions.Assume no additional investment by owners when answering these questions.
A) What was the amount of Carroll's total assets at the end of the year if liabilities decreased by $60,000 and owners' equity increased by $90,000?
B) Was the company profitable? Explain your answer.

• A) What was the amount of Carroll's total assets at the end of the year if liabilities decreased by $60,000 and owners' equity increased by $90,000?
• B) Was the company profitable? Explain your answer.

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Definitions:

Middle Ear

The section of the ear between the eardrum and the inner ear, containing three small bones that transmit sound vibrations.

Eyelid Muscle

Refers to any of the muscles responsible for eyelid movement, including the levator palpebrae superioris, which raises the eyelid, and the orbicularis oculi, which closes the eyelid.

Blinking

A rapid opening and closing of the eyelids which helps to spread tears across and remove irritants from the surface of the cornea and conjunctiva.

Squinting

The partial closing of one's eyes to improve focus or reduce light exposure, or a misalignment of the eyes where they do not aim simultaneously at the same point.