Case 4.30 LO 6,7 Capstone analytical review of Chapters 2-4. Calculate liquidity an ability measures and explain various financial statement relationships excavation contractor Gerrard Construction Co. is an excavation contra following summarized data (in thousands) are taken from the December 31, 2017 financial statements: For the Year Ended December 31, 2019: Net revenues ........ Cost of services provided...... Depreciation expense ...... .. Operating income ............. Interest expense ............. Income tax expense ........... Net income .................. ... $ 96,600 34,200 19,500 $ 42,900 11,400 9,600 $ 21,900 At December 31, 2019: Assets Cash and short-term investments .. Accounts receivable.net Property, plant, and equipment, net .......... Total assets wie, het ......... $ 8.400 29.400 232,200 $270,000 .. Liabilities and Stockholders' Equity Accounts payable......... Income taxes payable ........... Notes payable (long term)............ Paid-in capital Retained earnings .............................. Total liabilities and stockholders' equity ............ $ 4,500 4.800 142,500 30,000 88,200 $270.000 At December 31, 2018, total assets were $246,000 and total stockholders' equity was $97.800. There were no changes in notes payable or paid-in capital during 2019. Chapter 4 The Bookkeep pler 4 The Bookkeeping Process and Transaction Analysis Required: a. The cost of services provided amoun general, and administrative expenses) except depre suppose the primary reason was form other operating expenses? From a conc be considered a "cost" of providing services? unt includes all operating expenses (selling, xcept depreciation expense. What do you was for management to separate depreciation from from a conceptual point of view, should depreciation b. Why do you mounts of depreciation expense and interest expense ad Construction Co.? To which specific balance sheet ome tax expense is different from the amount of I assets. Why do you suppose this amount is are so high for Gerrard Construction Co. accounts should a financial analyst relate these expenses. Calculate the company's average 1 the company's average income tax rate. (Hint: You must the earnings before taxes.) d. Explain why the amount of income tax expens income taxes payable. e. Calculate the amount of total current assets. Why do you SUPE so low, relative to total assets? 1. Why doesn't the company have a Merchandise Inventory accoun alculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. n. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. Assess the company's overall profitability. What additional information would you like to have to increase the validity of this assessment? Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis of retained earnings.)