Question

LITE juste TECE DETOW w prepare come statements tour the year ended December 31; (b) the statement of owner'segity (SOE tab) for the year ended December 31 [Note: Crowder capital at December 31 of the prior year was $255,000); and (c) the balance sheet (Stab) as of December 31. 2. Compute the profit margin for the year (profit margin tab) (use total revenues as the denominator). The adjusted trial balance for Crowder Company as of December 31 follows: Debit Credit 35,000 50,000 16,000 150,000 16,000 170,000 45,000 185.000 17 25,000 65,000 Cash Accounts receiveable Interest receivable Notes receivable (due in 90 days) Office supplies Automobiles Accumulated depreciation - automobiles Equipment Accumulated depreciation equipment Land Accounts payable Interest payable Salaries payable Unearned revenue Long-term notes payable Crowder, capital Crowder, withdrawals Fees earned Interest earned Depreciation expense automobiles Depreciation expense equipment Salaries expense Interest expense Office suppliese pense 100,000 18,000 15,000 35,000 120,000 255,000 50.000 450.000 20.000 37,000 24.000 195,000 1.000 Total Requirement 15 SOE es Pront Margin

Answer 1

Income Statement
Revenues
Fees Earned	$       4,50,000
Interest Earned	$          20,000
Total Revenues		$ 4,70,000
Expenses
Depreciation Expense - Automobiles	$          37,000
Depreciation Expense - Equipment	$          24,000
Salaries Expense	$       1,95,000
Interest Expense	$          35,000
Office Supplies Expense	$          28,000
Advertising Expense	$          60,000
Repairs Expense - Automobiles	$          27,000
Total Expenses		$ 4,06,000
Net Income		$     64,000

Profit Margin = Net Income / Total Revenues x 100
= $64000 / 470000 x 100 = 13.62%