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

question 79

Essay

A certain company began the year with total assets of $10,000,000 and total liabilities of $6,200,000.No additional stock was 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 Liabilities decreased by $\$ 600,000$ and Stockholders' Equity increased by $\$ 900,000$ ?
B)Was the company profitable? Explain your answer.

• A)What was the amount of Total Assets at the end of the year if Liabilities decreased by \( \$ 600,000 \) and Stockholders' Equity increased by \( \$ 900,000 \) ?
• B)Was the company profitable? Explain your answer.

---

Definitions:

Confidence Interval

An estimate of an interval in statistics that likely contains a population parameter, providing a range of plausible values for that parameter.

Average Value

The sum of a set of numerical values divided by the number of values in the set, commonly referred to as the mean.

Simple Linear Regression

A statistical method for modeling the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

Correlation Coefficient

A numerical measure that quantifies the degree to which two variables are related or move together.