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?

Question

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?

Quizplus · Accepted Answer

The Answer of 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?

The Following Information Comes from the Records of Morton Corporation