Answer these questions about two companies:

1. Mortimer Limited began the year with total liabilities of $400,000 and total shareholders' equity of $300,000. During the year, total assets increased by 20%. How much are total assets at the end of the year?

2. Aztec Associates began a year with total assets of $500,000 and total liabilities of $200,000. Net income for the year was $100,000 and no dividends were paid. How much is shareholders' equity at the end of the year?