Al Falfa Department Store is located near the Village Shopping Mall. At the end of the company’s fiscal year on December 31, 2001, the following accounts appeared in its adjusted trial balance:

Additional data: $20,000 of the mortgage payable is due for payment next year.
Instructions

(a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.

(b) Calculate the return on assets ratio, profit margin ratio, gross profit rate, and operating expenses to sales ratio. Assume total assets at the beginning of the year were $320,000.

Transcribed Image Text:

Accounts Payable Accounts Receivable Accumulated Accumulated Depreciation-Building Depreciation-Equipment Building Cash $ 79,300 50,300 52,500 42,900 190,000 33,000