Question

These financial statement items are for Tamarisk, Inc. at year-end, July 31, 2017. Salaries and wages payable $3,480 Salaries and wages expense Supplies expense 58,800 17,400 19,900 Equipment Accounts payable 4 Service revenue ,100 67,400 10,300 Rent revenue Notes payable (due in 2020) 3,600 Common stock 16,000 10, Cash 30,500 Accounts receivable 11,580 8,000 Accumulated depreciation-equipment Dividends 4,000 Depreciation expense 6,000 Retained earnings (beginning of the year) 35,300

Answer 1

Tamarisk, Inc. Income statement For the Year Ended July 31, 2017 Revenue Sales Revenue Rent Revenue 67,400 10,300 $ 77,700 Expenses : Salaries and Wages Expenses Depreciation Expenses Supplies Expense Total Expenses Net Income 58,800 6,000 17,400 $ $ S 82,200 (4,500) Tamarisk, Inc. Statement of Retained Earnings For the Year Ended July 31, 2017 Opening Balance of Retained Earnings Add: Net Income $ 35,300 (4,500 30,800 4,000 26,800 $ $ $ Less: Dividend paid Closing Balance of Retained Earnings

$ 42.080 $ 11,900 Tamarisk, Inc. Balance Sheet July 31,2017 Assets Current assets Cash $ 30,500 Accounts Receivables $ 11,580 Total Current Assets Notes Receivables Property, plant and Equipment Equipment $ 19,900 Accumulated Depreciation - Equipment $ 8,000 Total Property, Plant, and equipment Total assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $ 4,100 Salaries and Wages Payable $ 3,480 Total Current Liabilities 7,580 Long Term Borrowings Notes Payable 3.600 Total Liabilities Shareholders Equity Common stock 16,000 Retauned Earnings $ 26,800 Total shareholders Equity Total Liabilities and Shareholders Equity S 53,980 $ 11,180 $ 42,800 53,980 S

5.6 : 1 Current Ratio Debt to assets ratio 20.70% Notes: Current ratio = Current assets / Current liabilities = $42,080/$7,580 = 5.6:1 Debt to assets ratio = Total Debt / Total assets = $11,180/$53,980 = 20.7%