1)Use this income statement to complete the section below.Be sure to show all computations.

Green Country Corporation

Income Statement

For the Year Ended December 31, 2020

Net Sales 1,470,000.00

Costs and expenses

Cost of goods sold 712,000.00

Selling expenses 112,000.00

Administrative expenses 97,000.00

Research and development 45,000.00

Total costs and expenses 966,000.00

Earnings before interest and taxes 504,000.00

Interest expense 55,000.00

Interest income 4,500.00

Earnings before taxes 444,500.00

Provision for income taxes 155,575.00

Net income 288,925.00

Using the information reported above, calculate the following for Green Country Corporation (GCC).

a. Gross profit and gross profit percentage

b. Income from operations (operating income)

c. Net profit percentage

GCC has 10,000 shares of $50 par 10% preferred stock outstanding, and 150,000 shares of common stock outstanding (the number remained the same all year).On December 31, its stock was trading at $6.21 per share.Compute: d. earnings per share and e. the price earnings ratio.

2) Acme Company made a short term loan of $5,000 to one of its suppliers that was having cash flow problems.This supplier is continuing to have problems, and Acme considers it likely that they will not be able to collect the full amount when the principal is due in 1 year.The company's credit department has developed the following probability table for the amounts it expects to collect in 1 year.Use these amounts, and a discount rate of 7% in order to determine the fair market value to be used for reporting this note on Acme's balance sheet.

Possible Cash Flows Probability

$0 5.00%

$2,500 25.00%

$4,000 55.00%

$5,000 15.00%

3) According to SFAC No. 8, the objective of financial reporting is to provide financial information to decision makers about providing resources to an entity.Investors and lenders are the primary providers of resources to business entities.

a. Discuss the different informational needs of these two types of resource providers.

b.Explain two financial ratios that provide useful information to investors.

c.Explain two financial ratios the provide useful information to lenders.

4) Norford Truck Company sells tractors to area farmers. The price of each tractor includes GPS service for 24 months.Norford sold a 60 HP Tractor to Farmer Brown for $45,000 on January 2, 2020.The package included a 24-month GPS package.The stand-alone price for the tractor is $49,500 and cost of two years GPS service would be $5,500.

a. Identify the separate performance obligations.

b. Show the journal entry to record the original sale.

c. Show the journal entry that would be required on December 31, 2020.

5) The Villas Corporation had annual credit sales of $492,000 for 2020.Accounts receivable at the beginning of the year were $100,000 and they were $116,000 at the end of the year.Calculate accounts receivable turnover, and days (sales) in receivables for the year.What does this information tell you about Villas' ability to collect its receivables?