Sj plumbing incs 2010 income statement shows a net profit, Accounting Basics

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Sj plumbing incs 2010 income statement shows a net profit

Discussion

S&J Plumbing, Inc.'s 2010 income statement shows a net profit before tax of $468, whereas the balance sheet that the company's equity for the fiscal year-end 2010 is $1,746.

• Calculate the company's return on equity and explain whether the managers are providing a good return on the capital provided by the company's shareholders.

• Diagram and explain the operating cycle of a service company.

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Accounting Basics: Sj plumbing incs 2010 income statement shows a net profit

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Accounting Basics: Sj plumbing incs 2010 income statement shows a net profit

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