Accounting exercise

Listed below are the accounts for Patrick, Inc. at December 31, 2008 and their balances. The amounts listed for the Income Statement accounts are before the closing entry has been posted. The amounts for the Balance Sheet accounts are after the closing entry has been posted.

Accounts Payable	$200,000
Accounts Receivable	80,000
Accumulated Depreciation	46,000
Advertising Expense	19,000
Building	300,000
Cash	105,000
Common Stock	300,000
Cost of Goods Sold	500,000
Equipment	140,000
Interest Expense	5,000
Inventory	120,000
Depreciation Expense	26,000
Notes Payable, Long-Term	10,000
Security Deposit	10,000
Rent Expense	75,000
Retained Earnings	130,000
Sales	825,000
Salaries Payable	60,000
Salary Expense	100,000
Tax Expense	18,000
Taxes Payable	9,000
Utilities Expense	40,000

Patricks beginning balance (12/31/07) in Retained Earnings was $98,000 and the beginning Common Stock balance was $200,000. The company had 10,000 shares of common stock outstanding at the beginning of the year. The corporation issued 5,000 shares of common stock on March 1, 2008, 10,000 shares on April 1, 2008 and another 5,000 shares on October 1, 2008. The market price of the stock at the end of 2008 was $12.00 per share.

Answer the following questions based on the information above.

You might prepare the trial balance and financial statements first.

The Total Current Assets at December 31, 2008 was

A) $ 105,000

B) $ 305,000

C) $ 709,000

D) $ 185,000

E) Some other number

The Total Current Liabilities at December 31, 2008 was

A) $ 269,000

B) $ 260,000

C) $ 279,000

D) $ 709,000

E) Some other number

The Total Liabilities at December 31, 2008 was

A) $ 269,000

B) $ 260,000

C) $ 279,000

D) $ 709,000

E) Some other number

The current ratio at December 31, 2008 was

A) 6.56

B) 21.96

C) 1.83

D) 12.00

E) None of the above

The Total Owners Equity at December 31, 2008 was

A) $ 130,000

B) $ 300,000

C) $ 709,000

D) $ 430,000

E) Some other number

The Gross Margin for the year ended December 31, 2008 was

A) $ 825,000

B) $ 500,000

C) $ 300,000

D) $ 325,000

E) Some other number

The Operating Income for the year ended at December 31, 2008 was

A) $ 325,000

B) $ 65,000

C) $ 60,000

D) $ 42,000

E) Some other number

The Taxable Income for the year ended at December 31, 2008 was

A) $ 325,000

B) $ 65,000

C) $ 60,000

D) $ 42,000

E) Some other number

The Earnings Per Share for the year ended at December 31, 2008 was

A) $ 4.20

B) $ 2.10

C) $ 1.83

D) $ 1.40

E) Some other number

The Dividends Declared during 2008 were

A) $ 10,000

B) $ 20,000

C) $ -0-

D) $ 42,000

E) Some other number