Question

E.) calculate the amount of dividends declared and paid to Jeff and Kristi DeBauge during the year ended December 31,2019. H.) calculate the amount of working capital and 1.) calculate ROI (including margin and turnover) and ROE for the year ended December 31,2019. DeBauge Realtors Inc. is a realty firm owned by Jeff and Kristi DeBauge. The DeBauge family owns 100% of the corporation's stock. The following summarized data (in thousands) are taken from the December 31, 2019, financial statements: For the Year Ended December 31, 2019: Commissions revenue Cost of services provided Advertising expense Operating income Interest expense Income tax expense Net income At December 31, 2019 Assets Cash and short-term investments Accounts receivable, net Property, plant, and equipment, net Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable Notes payable (long term) Paid-in capital Retained earnings Total liabilities and stockholders' equity At December 31, 2018, total assets were $202 and total stockholders' equity was $52. There were no changes in notes payable or pald-in capital during 2019.

Answer 1

& for during er. Amount 145 Tast we draw profit & loss Account I the years Dr. Trading and Profit & Loss Account particulers Amount particulers 1. cost To, cost of serviee found 58 no Advertisement Ex. 30 To, o peroding Gross 57 - profit od 1145 ccmmission revenue 145 By, operating I profit bla or coloss 19 170, Interst Ex To, Income taxe expenses To, Dividend paid | 28 (ho, net profit (After paid dividendy N (that are transfered do capital) 57 Explanation's According to qustion stock holders' equity previous Year 2018 nere - $52000 And we calculate corrent year 2009 (3162/2019) stock halders' equity a paid - In- capital of Retained Earning) = (24,000 +3,0= $ 52,000 Itin And also there in no Change Paid-up capital we tell that, there is no change in Retained earning If there is no change in Relained earning, it indicate Cutient tynt, naut any profit oanstered current year profunt transfer do capital Retained earning.. so It is clear that a 1-1-2019 do 31-12-2019 Pore doing the year pre all profit are distributed Among the shave haiders or Stoere holders. ! 2. Dividend declared or paid during the a year $ 28,000

H. Working capital are mainly two types ? - D Gross working capital and ii) Net wortung 1. capital 1) wross wosining capital means only current assates - Gross warning capital = leash or short-term investment t - Accounts recivable Nella = 131,000 + 40,000) = 71,000 $ 11) Net working capital means & Current Assater- @wocent liabilities (Tacome fare pay blet Accousts paybde) 1.6 (71,000 - 93,000) = – 22,000 $ There There is Negative working capital That means the cliabilities that need to be paid withing one year exceed the chorent Assates that are monetizble over the same period. eworent 1 Radio = cwrrent Assaites . - Corrent liabilities 71,000 50.7634 93,000 It indicate to meet $ 1 cwortent liabilities of the company current assotes present in company $ 0.7634, I) . ROE = Reloon on Equity - Net Income Sofoclesalien's Forect X 100 34 23452 -X100 = = to 65.38461.