The Following Information Comes from the Records of Morton Corporation

question 37

Essay

The following information comes from the records of Morton Corporation.Assume no additional investment by owners when answering the following questions:
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$\begin{array}{llll} & \text { Assets } & \text { Liabilities } & \text { Owners' Equity } \\\text { January } 1,2017 & \$ 98,000 & \$ 54,000 & \$ \\\text { December } 31,2017 & 131,000 & & 84,000\end{array}$ A) What is the amount of owners' equity at January 1,2017 ?________

B) What is the amount of liabilities at December 31,2017 ?_____________

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:

Attribution Theory

A psychological theory that examines how individuals interpret and understand their own behavior and the behavior of others by attributing causes to actions.

Control Feelings

The ability to manage and regulate one's emotions in a healthy manner.

Dating And Courtship Customs

The traditional practices and behaviors involved in seeking and establishing intimate relationships, varying widely across cultures.

Cultural Influence

The impact that a society's values, beliefs, and practices have on its members' behaviors, attitudes, and how they perceive the world.