Avery Corporation began the year with total assets of $800,000 and total liabilities of $620,000.Use the accounting equation to answer the following questions.Assume no additional investment by owners when answering these questions.
A) What was the amount of Avery's total assets at the end of the year if liabilities decreased by $\$ 60,000$ and owners' equity increased by $\$ 90,000$ ?
B) Was the company profitable? Explain your answer.

Question

Avery Corporation began the year with total assets of $800,000 and total liabilities of $620,000.Use the accounting equation to answer the following questions.Assume no additional investment by owners when answering these questions.
 A) What was the amount of Avery's total assets at the end of the year if liabilities decreased by $\$ 60,000$ and owners' equity increased by $\$ 90,000$ ?
B) Was the company profitable? Explain your answer.

Quizplus · Accepted Answer

The Answer of Avery Corporation began the year with total assets of $800,000 and total liabilities of $620,000.Use the accounting equation to answer the following questions.Assume no additional investment by owners when answering these questions.
 A) What was the amount of Avery's total assets at the end of the year if liabilities decreased by $\$ 60,000$ and owners' equity increased by $\$ 90,000$ ?
B) Was the company profitable? Explain your answer.

Avery Corporation Began the Year with Total Assets of $800,000 $60,000\$ 60,000$60,000

Avery Corporation Began the Year with Total Assets of $800,000 $\$ 60,000$