Assets The comparative balance sheet of Cookies Coffee Creations Inc. at October 31, 2020 for the years 2020 and 2019, and the income statements for the years ended October 31, 2019 and 2020, are presented below. COOKIE & COFFEE CREATIONS INC Balance Sheet October 31 2020 2019 Cash $22,324 $5,550 Accounts receivable 2,710 Inventory 7,097 7,450 Prepaid expenses 5,800 6,050 Equipment 102,000 75,500 Accumulated depreciation (25,200) (9.100) Total assets $116,071 $88,160 Liabilities and Stockholders' Equity Accounts payable $1,150 $2,450 Income taxes payable 9,25 7,200 Dividends payable 27,000 27,000 Salaries and wages payable 7,250 1,280 Interest payable 188 0 Note payable-current portion 4,000 o Note payable-long-term portion 6,000 0 Preferred stock, no par, $6 cumulative- 3,000 and 2,800 shares issued, respectively 15,000 14,000 Common stock, $1 par-25,180 shares issued 25,180 25,180 Additional paid in capital-treasury stock 250 250 Retained earnings 20,802 10,800 Total abilities and stockholders' equity $116,071 $88,160 COOKIE & COFFEE CREATIONS INC. Year Ended October 31 2020 2019 Sales $485,625 $462,500 Cost of goods sold 222,694 208,125 Gross profit 262,931 254,375 Operating expenses Salaries and wages expense 147,979 146,350 Depreciation expense 17,600 9,100 Other operating expenses 48,186 42,925 Total operating expenses 213,765 198,375 Income from operations 49,166 56,000 Other expenses Interest expense 413 0 Loss on disposal of plant assets 2,500 0 Total other expenses 2,913 Income before income tax 46,253 56,000 Income tax expense 9,251 14,000 Net income $37,002 $42,000 0 Additional information: Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semi-annual payments of $2.500 on May 1 and Calculate the following ratios for 2019 and 2020. (Round current ratio to 2 decimal places, eg. 12.61, debt to assets and gross profit rate to decimal places, e... 12 and all other answers to 1 decimal place, c.9. 12.6% 2020 2019 :1 1. Current ratio 2. Debt to assets 3. Gross profit rate 4. Profit margin 5. Return on assets (Total assets at November 1, 2018, were $33,180.) 6. Return on common stockholders' equity (Total common stockholders' equity at November 1, 2018, was $23,180. Dividends on preferred stock were $16,800 in 2019 and $18,000 in 2020). Click if you would like to show Work for this question Open Show Work Accounting Cycle Review 11-02 a-f, g1-g3, h1-h2 (Part Level Submission) Karen Noonan opened Clean Sweep Inc. on February 1, 2020. During February, the following transactions were completed. Feb. 1 Issued 4,500 shares of Clean Sweep common stock for $12,150. Each share has a $1.50 par. 1 Borrowed $8,000 on a 2-year, 6% note payable. 1 Paid $8,720 to purchase used floor and window cleaning equipment from a company going out of business ($4,820 was for the floor equipment and $3,900 for the window equipment). 1 Paid $200 for February Internet and phone services 3 Purchased cleaning supplies for $1,060 on account. 4 Hired 4 employees. Each will be paid $530 per 5-day work week (Monday-Friday). Employees will begin working Monday, February 9. 5 Obtained insurance coverage for $10,800 per year. Coverage runs from February 1, 2020, through January 31, 2021. Karen paid $2,700 cash for the first quarter of coverage. 5 Discussions with insurance agent indicated that providing outside window cleaning services would cost too much to insure. Karen sold the window cleaning equipment for $3,650 cash. 16 Billed customers $3,500 for cleaning services performed through February 13, 2020. 17 Received $540 from a customer for 4 weeks of cleaning services to begin February 21, 2020. (By paying in advance, this customer received 10% off the normal weekly fee of $150.) 18 Paid $400 on amount owed on cleaning supplies. 20 Paid $3 per share to buy 300 shares of Clean Sweep common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. 23 Billed customers $4,400 for cleaning services performed through February 20. 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). 25 Collected $2,300 cash from customers billed on February 16. 27 Paid $200 for Internet and phone services for March 28 Declared and paid a cash dividend of $0.20 per share. (a) Journalize the February transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Feb. 1 C 12,150 Common Stock Paid in Capital in Excess of Par.common Stock Feb. 1 V Cash Notes Payable Feb. 1Vment Feb 1 Us Expense Accounts Payable Feb. V Supplies Feb. 4 V No Entry No Entry Feb. V Prepaid Insurance C Feb. 5 Ca Loss on Disposal of Plant Assets Equipment Feb. 16 Accounts Receivable Service Reven Feb. 12 V Cash Uneared Service Revenue Feb. 18 Accounts Payable Cash Feb. 20 V Treasury Stock Cash Feb. 23 Accounts Receivable Service Revenue Feb. 24 Salaries and Wages Expense Cash Feb. 25 V Cash Accounts Receivable Feb. 27 Prepaid Expenses Cash Feb. 28 V Dividends Click if you would like to show Work for this question! Open Show Work