9 points 1 Gerrard Construction Co. is an excavation contractor. The following summarized data (in thousands) are taken from the December 31, 2019, financial statements: eBook Pret For the Tear Ended December 31, 2019: Cost of services provided Depreciation expe Operating Incon Interest expense Income tax expe Net Incone At December 21, 2019: Assets Cash and short-term imestants Accounts receivable, not Property, plant, and equent, net Total auto Liabilities and Stockholders' Equity Accounts payabile Income taxes payable Notes payable Gang tera Paid-in capital Retained in Total abilities and stockholders' equity $142.200 38,000 $ 30,900 28,988 11.500 1 30.412 $ 30,300 21,300 247,400 $ 289,000 5,450 5,750 144,400 30,000 108.400 1289,000 At December 31, 2018, total assets were $254.200 and total stockholders' equity was $105,400. There were no changes in notes payable or paid-in capital during 2019. Required: a. The cost of services provided amount includes all operating expenses (selling, general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost" of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes) e. Calculate the amount of total current assets. f. Why doesn't the company have a Merchandise Inventory account? 9. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis of retained earnings.)