Quote Originally Posted by ShakeyX View Post

The confusion stems from the fact that in English, where I would say "I am good", my friend tells me that Russians simply say Хорошо (an adverb if I'm correct). So what is the verb it is adding to, similarly with как дела, как ты, как твои дела. I know roughly what they mean but be nice to have a really technical, in-depth view of the grammar behind these simple opening words.
Я хорошо, meaning 'I am well, (good)' in English, хорошо is an adverb describing 'am.' So when a person is asking "How are things?" and someone replies "Good." it is the same concept in both languages.

Similarly, it is possible to hear:

"Добрый день."
"Добрый день."
"Как ты поживаешь?"
"Спасибо, (поживаю) хорошо. А ты?"
"Тоже хорошо."

"Good day."
"Good day."
"How are you (getting along)?"
"Well, thank you. And you?"
"I am also well."