Question

Please figure out the following:

$ 4,800 5,250 5,300 3,000 30,300 Accounts ts receivable Trucks.... Accumulated S10,000 7,600 2,100 1,200 6.700 10,000 16,050 Accumulated depreciation-Equipment.. 80,500 29,800 Supplies expense Advertising expense... 5,100 8,000 Depreciation expense-Equipment

1. Income Statement.

2. Statement of Retained earnings.

3. Profit Margin and Payout Ratio.

Answer 1

	Answer =1)
	INCOME STATEMENT
	Service Fees Earned	$                      80,500
	Total Income (A)	$                      80,500
	Less: Expenses
	Salaries Expenses	$                      29,800
	Rent Expenses	$                      10,200
	Insurance Expenses	$                        4,900
	Supplies Expenses	$                        5,100
	Advertsing Expenses	$                        8,000
	Depreciation Expenses - Trucks	$                        4,000
	Depreciation Expenses - Equipment	$                            800
	Total Expenses (B)	$                      62,800
	Net Income (A-B)	$                      17,700
	Answer =2)
	Statement of Retained Earnings:
	Opening Balance of Retained Earning	$                      16,050
	Add: Net income of the year	$                      17,700
	Balance Available for Shareholder's	$                      33,750
	Less: Cash Dividend Paid	$                        7,500
	Closing Retained Earnings	$                      26,250
	Answer = = 3)
	Profit Margin = Net Income / Total Revenue
	Profit Margin =
	Net income =	$                      17,700
	Divide By	"/" By
	Total Revenue Revenue	$                      80,500
	Profit Margin =	0.2199
	Profit Margin in % =	21.99%
	Payout Ratio = Dividend Paid / Net income
	Payout Ratio = $ 7,500 / $ 17,700
	Payout Ratio = 0.4237
	Payout Ratio = 42.37%