rmation given below, prepare an income statement and statement 2) the indmings a
ID: 2335592 • Letter: R
Question
rmation given below, prepare an income statement and statement 2) the indmings and Balance Sheet for Rapid Car Services from the adjusted crial balance. t baUSE PROPER FORMAT. Also calculate aaurrent Ratio, i) Debt Ratio, ii) Return on Assets, iv) What percentage of net income was distributed at Dividends Rapid Car Services Adjusted Trial Balance For the year ended December 31 Cash Accounts receivable Office supplies... 33,000 14,200 1,700 100,000 Vehicles 45,000 11,500 20,000 51,900 Accounts payable Common stock Retained earnings Dividends Fees earned Rent expense.. Office supplies expense.... Utilities expense.... Depreciation Expense - Vehicle.. Salary expense Fuel expense Totals 155,000 13,000 2,000 2,500 15,000 50,000 283,400 283,400 0lExplanation / Answer
Income statement :
Statement of retained earnings :
Balance sheet
a) Current ratio = 48900/11500 = 4.25:1
b) Debt ratio = 11500/103900 = 0.11:1
c) Return on assets = 60500*100/103900 = 58.23%
d) Percentage of dividend on net income = 40000*100/60500 = 66.12%
Revenue Fees earned 155000 Expenses Rent expense 13000 Office supplies expense 2000 Utilities expense 2500 Depreciation expense-Vehicles 15000 Salary expense 50000 Fuel expense 12000 Total expense 94500 Net income 60500Related Questions
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