2. The following relate to Farr Corporation for the month of April: Sales Revenue $140,000 Gain on the sale of Land $20,000 Cost of Goods Sold $75,000 Tax Expense $14,000 Advertising Expense $10,000 Dividends Paid $7,000 Loss on Lawsuit $24,000 0. Determine Farr's gross profit for the month of April. 1. Determine Farr's net income for the month of April 2. If retained earnings at the beginning of April were $1,500,000, what would retained earnings be at the end of April? 3. Maverick Company has the following account balances at the end of December. Show that Maverick's balance sheet would balance using the accounting equation. Cash $8,000 Capital Stock $120,000 Inventory $16,000 Note Payable $45,000 Retained Earnings $29,000 Building $150,000 Equipment $20,000 4. Ramond Company has hired you to prepare financial statements for the year ending 12/31. On your first day of work, your assistant comes to you with several items that could be classified as expenses or could be classified as assets. Based on your knowledge of accounting so far, determine whether the following items should be recorded as an expense or an asset 0. On 12/31, Ramond paid $14,000 to rent office space for the next twelve months. 1. On 10/1, Bamond paid $40,000 for insurance that covered the company's property for the last quarter of 2. On 6/1, Ramond purchased $27,000 in supplies, all of which were used by 12/31 3. On 12/31, Ramond purchased $5,000 worth of supplies for the coming month. 5. For each of the following determine the missing balance. Net Income $82,900 Cost of Goods Sold $459,030 Advertising Expense $56,000 Gain on Sale of Equipment $5,000 Income Tax Expense $50,000 Sales Revenue ? the year. 0. 1. Net Income $6,500 Retained Earnings, 12/31 $16,200 Dividends $2,900 Retained Earnings, 1/1 ? 2 Cash $460,000 Accounts Receivable $540,200 Current Assets $1,670,000 Inventory 3. Total Assets $4,000 Total Liabilities $32,000 Capital Stock $15,000 Retained Earnings