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13. (TCOs B and D) The following items are taken from the financial statements of Lacey Company for 2012: Advertising Expense $14,000 Accounts Receivable 12,000

13. (TCOs B and D) The following items are taken from the financial statements of Lacey Company for 2012:

Advertising Expense

$14,000

Accounts Receivable

12,000

Cost of Goods Sold

65,000

Accumulated DepreciationEquipment

20,000

Accounts Payable

21,000

Cash

44,000

Depreciation Expense

17,000

Common Stock

100,000

Dividends

25,000

Insurance Expense

5,000

Note Payable (due 2014)

70,000

Rent Expense

4,000

Prepaid Insurance

17,000

Retained Earnings (beginning)

22,000

Salaries Expense

50,000

Salaries Payable

3,500

Net sales

175,000

Supplies

4,000

Supplies Expense

3,000

Equipment

210,000

Instructions (a) Calculate the net income. (18 points) (b) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2012. (7 points) (c) Calculate the gross profit percentage. (5 points) (Points : 30)

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