E1-19A. (Learning Objective 3: Using the accounting equation) Answer these questions about the following companies:

1. Delta Cruises began the year with total liabilities of $60,000 and total shareholders’ equity of $90,000. During the year, total assets increased by 20%. How much are total assets at the end of the year?

2. Carnival Airlines Ltd. began the year with total assets of $120,000 and total liabilities of

$15,000. Net income for the year was $20,000, and dividends were $4,000. How much is shareholders’ equity at the end of the year?