The Following Information Comes from the Records of Morton Corporation

question 151

Essay

The following information comes from the records of Morton Corporation.Assume no additional investment by owners when answering the following questions: $\begin{array}{lll}&\text { Assets }&\text { Liabilities }& \text { Owners' Equity } \\\text { January 1, 2016}&\$98,000&\$54,000&\$\\\text {December 31, 2016 }&131,000 & & 84,000\end{array}$

A) What is the amount of owners' equity at January 1, 2016?
B) What is the amount of liabilities at December $31,2016 ?$
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, 2016?
• B) What is the amount of liabilities at December \(31,2016 ?\)
• 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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Definitions:

Autonomous Motivation

The drive to perform an activity for its inherent satisfaction or enjoyment, rather than external pressures or rewards.

Relationships

How two or more ideas, items, or individuals are linked together, or the condition of being linked.

Chance

The occurrence of events in the absence of any obvious intention or cause; luck.

Good Performance

The successful completion of tasks or achievement of objectives to the standards of the role or organization.