Question - The following items are taken from the financial statements of Ashe Company for 2012:
|
Equipment
|
$100,000
|
|
Accounts Receivable
|
12,000
|
|
Accounts Payable
|
9,000
|
|
Cost of Goods Sold
|
72,000
|
|
Utilities Expense
|
11,000
|
|
Depreciation Expense
|
17,000
|
|
Insurance Expense
|
9,000
|
|
Common Stock
|
200,000
|
|
Dividends
|
12,000
|
|
Rent Expense
|
3,000
|
|
Note Payable (due 2014)
|
40,000
|
|
Advertising Expense
|
14,000
|
|
Prepaid Insurance
|
17,000
|
|
Retained Earnings (beginning)
|
44,000
|
|
Accumulated Depreciation
|
50,000
|
|
Salaries Expense
|
60,000
|
|
Salaries Payable
|
3,500
|
|
Net sales
|
205,000
|
|
Supplies
|
4,000
|
|
Supplies Expense
|
5,000
|
Instructions
(a) Calculate the net income.
(b) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2012.
(c) Calculate the gross profit percentage.