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

question 230

Essay

A certain company began the year with total assets of $10,000,000 and total liabilities of $6,200,000.No additional shares were 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 liablities decreased by $\$ 600,000$ and shareholders' equity increased by $\$ 900,000$ ?

B) Was the company profitable? Explain your answer.

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