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Aubrae and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, was as follows: Credit 10,000 Furniture Refinishers, Inc. Trial Balance on January 1, 2020 Account Titles Debit Cash 5,000 Accounts receivable 4,000 Supplies 6,000 Small tools 6,000 Equipment Accumulated depreciation (on equipment) Other noncurrent assets (not detailed to simplify) 8,000 Accounts payable Dividends payable Notes payable Wages payable Interest payable Income taxes payable Unearned revenue Common stock (40,000 shares, $0.10 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Wages expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totals 29,000 4,000 6,000 9,000 29,000 Transactions during 2020 follow: a. Borrowed $40,000 cash on July 1, 2020, signing a one-year, 10 percent note payable. b. Purchased equipment for $19,000 cash on July 1, 2020. c. Sold 10,000 additional shares on January 1, 2020, of capital stock for cash at $.50 market value per share at the beginning of the year. d. Earned $148,000 in revenues. Transactions dated August 15, 2020, including $62,000 on credit and the rest in cash. e. Incurred $40,000 in wages expense and $12,000 in miscellaneous expenses for 2020, with $10,000 on credit and the rest paid with cash. f. Purchased additional small tools on September 23, 2020, $5,000 cash. g. Collected accounts receivable on October 6, 2020, $12,000. h. Paid accounts payable on November 11, 2020, $13,000. i. Purchased $24,000 of supplies on account on November 30, 2020. j. Received a $3,000 deposit on work to start January 15, 2021. k. Declared a cash dividend on December 1, $15,000; paid on December 31. Data for adjusting entries: 1. Supplies of $8,000 and small tools of $7,000 were counted on December 31, 2020 (debit Miscellaneous Expenses). m. Depreciation for 2020, $3,000. n. Interest accrued on notes payable (to be computed). o. Wages earned since the December 24 payroll but not yet paid, $6,000. p. Income tax expense was $6,000, payable in 2021. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Stmt of Cash Flows Analysis Compute the applicable ratios shown below for 2020. (Round your answers for a. and b. to 2 decimal places. Enter your answer for c. as a whole percentage (i.e. .95 should be entered as 95).) a. Compute the current ratio for 2020. Current ratio 1.43 b. Compute the total asset turnover ratio for 2020. Total asset turnover 3.25 X c. Compute the net profit margin ratio for 2020. Net profit margin 36 %
