Question

1. calculate net income or net loss

2. prepare a balance sheet

3. solve for ratios

The following accounts in no particular order 31, 2017. (S/TShort-Term: LT = Long-Term) REQUIRED: $5,000 A) Calculate Perfect Reb Corporation's net income ornet loss for the 2017 fiscal year. It is HIGHLY RECOMMENDED that your work follow the format of a multiple step income statement B) Using proper form, prepare Perfect Reb Corporation's balance sheet for 2017 c) Using the information provided, solve for the requested ratios. 27722 Sales Discounts $52.000 of IBIT) 142.000 20,000 Income Tax Expense (25 Common Stock (13.000 shares outstanding) Accrued Expenses (Payables) 4,000 Cash 50,000 62,000 Miscellaneous Operating Expenses 20,000 Interest Expense Marketable Securities 12,000 Accounts Receivable 186,000 11,000 Notes Payable (due in 5 years) 777777 Buildings 19,000 Rent Expense Retained Earnings 60,000 15,000 Unearned Revenue 40,000 Wages Expense 433,000 48,000 Allowance for Uncollectible Accounts Inventory 144,000 Sales 41,000 Accumulated Depreciation - Buildings 12,000 62,000 11,000 Accounts Payable Mortgage Payable ($12,000 S/T) Sales Returns & Allowances Depreciation Expense 50,000 Gain on Sale of Equipment 109,000 2,000 Land 3,000 Cost of Goods Sold 7,000 Bad Debt Expense Interest Revenue 13,000 L/T Investments Notes Receivable ($2,000 S/T)

Answer 1

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Reb Corporation	2017
Income Statement	Amount $	Amount $
Sales	433,000.00
Less: Sales Returns & Allowances	12,000.00
Less: Sales Discounts	5,000.00
Net Sales		416,000.00
Cost of goods sold
Wages Expense	60,000.00
Depreciation Expense	11,000.00
Cost of goods sold	109,000.00
Cost of goods sold		180,000.00
Gross profit		236,000.00
Less: Other Operating Items
Misc. Operating Expenses	50,000.00
Gain on sale of equipment	(62,000.00)
Bad Debt expense	2,000.00
Interest Expense	4,000.00
Rent Expense	11,000.00
Interest Revenue	(3,000.00)
Other Operating Items		2,000.00
Income before tax		234,000.00
Less: Tax at 25%		58,500.00
Net Income		175,500.00
Number of shares outstanding		13,000.00
Earnings per share		13.50
Retained Earnings- Opening Balance
Stockholder's Equity	139,000.00
Less: Common Stock	52,000.00
Retained Earnings- Opening Balance	87,000.00
Statement of Retained Earnings
Opening Balance	87,000.00
Add: Net Income	175,500.00
Less: Dividends	-
Closing balance	262,500.00
Balance Sheet
Current Assets	Amount $	Amount $
Cash		142,000.00
Notes Receivable		2,000.00
Accounts Receivable	20,000.00
Less: Allowance for uncollectible debts	(15,000.00)	5,000.00
Inventory		40,000.00
Marketable Securities		62,000.00
Total Current Assets		251,000.00
Non Current Assets
L/T Investments	7,000.00
Notes Receivable	11,000.00
Non Current Assets		18,000.00
Plant Property & Equipment
Land		50,000.00
Buildings	186,000.00
Accumulated Depreciation	(48,000.00)	138,000.00
Plant Property & Equipment		188,000.00
Total Assets		457,000.00
Liabilities & Stockholder's Equity
Current Liabilities
Accrued Expense (Payables)	20,000.00
Mortgage Payable	12,000.00
Accounts Payable	41,000.00
Income Tax Payable	58,500.00
Unearned Revenue	19,000.00
Total Current Liabilities		150,500.00
Non Current Liabilities
Notes Payable	12,000.00
Mortgage Payable	132,000.00
Non Current Liabilities		144,000.00
Total Liabilities		294,500.00
Stockholder's Equity
Common Stock	52,000.00
Retained Earnings	110,500.00	This is the balancing figure.
Total Stockholder's Equity		162,500.00
Total Liabilities & Stockholder's Equity		457,000.00
	2017	2016
Total Current Assets	251,000.00
Less:
Inventory	40,000.00
Quick Assets	211,000.00
Inventory	40,000.00	15,000.00
Average Inventory	27,500.00
Net Accounts Receivable	5,000.00	2,000.00
Average Receivable	3,500.00
Dividend Per share	1.25
Market Price Per share	94.50

Answer 1
Acid Test Ratio	1.40
Quick Assets/Current Liabilities
Answer 2
Dividend Yield	1.32%
Dividend per share/ Market price of common share
Answer 3
Gross profit percentage	56.73%
Gross profit/ Net sales
Answer 4
Accounts Receivables Turnover	118.86
Net Sales / Average Receivable
Answer 5
Inventory Turnover	6.55
Cost of goods sold/Average Inventory
Answer 6
Price Earning Ratio	7.00
Market price of common share/ Earnings per share