Below Are Several Accounts from Costello Company's Accounting Records ​ A) How Much Is the Balance of Retained Earnings

Essay

Below are several accounts from Costello Company's accounting records.Answer the questions that follow. $$\begin{array} { l r l r } \text { Total liabilities, end of the year } & \$ 92,000 & { \text { Total assets, end of the year } } & \$ 143,000 \\\text { Capital stock, end of the year } & 16,000 & \text { Retained earnings, } \\&&\text { beginning of the year } & \$ 15,000 \\\text { Dividends declared and paid for the period } & 20,000 & \text { Net income } & 40,000\end{array}$$ ​ A) How much is the balance of retained earnings at the end of the year?
B) Show the accounting equation for Costello Company at the end of the year with the respective dollar amounts.

C) If stockholders' equity increases during the year, does that mean that the company is profitable? Explain your answer.