Question

These financial statement items are for Cullumber Company at year-end, July 31, 2022. Salaries and wages payable Salaries and wages expense Supplies expense Equipment Accounts payable Service revenue Rent revenue Notes payable (due in 2025) Common stock Cash Accounts receivable Accumulated depreciation-equipment Dividends Depreciation expense Retained earnings (beginning of the year) $3,600 59,100 17,100 16,360 4,600 67,700 10,000 3,300 16,000 35,440 11,300 7,100 4,000 4,000 35,000

Answer 1

Income Statement
Revenue:
Service revenue		67,700
Rent revenue		10,000
Total revenue			77,700
Expenses:
Salaries and wages expense	59,100
Supplies expense		17,100
Depreciation expense	4,000
Total Expense			80,200
Net Loss				-2,500
Statement of Retained earnings
Beginning balance of RE		35,000
Less: Dividend paid		-4,000
Less: Net Loss		-2,500	-6,500
Ending balance of Retained earnings	28,500
Balance Sheet
Assets
Current assets:
Cash			35,440
Accounts receivable		11,300
Total Current assets			46,740
Property, Plant and Equipment:
Equipment		16,360
Less: Accumulated depreciation	-7,100	9,260
Total Assets			56,000
Liabilities and Stockholder's equity
Current liabilities:
Accounts payable		4,600
Salaries and wages payable	3,600
Total Current liabilities		8,200
Long term Liabilities:
Notes payable due in 2025		3,300
Total Liabilities			11,500
Stockholder's equity:
Common Stock		16,000
Retained earnings		28,500
Total Stockholder's equity		44,500
Total Liabilities and Equity		56,000
Req 2.
Current Ratio:
Current assets			46,740
Divide: Current liabilities		8,200
Current Ratio:			5.7:1
Debt to Assets ratio:
Total Liabilities			11,500
Divide: Assets			56,000
Debt to Assets ratio:			20.54%