DeBauge Realtors Inc. is a realty firm owned by Jeff and Kristi DeBauge. The DeBauge family owns 100% of the corporation's stock. The following summarized data (in thousands) are taken from the December 31, 2019, financial statements: For the Year Ended December 31, 2019: Commissions revenue Cost of services provided Advertising expense Operating income Interest expense Income tax expense Net income At December 31, 2019: Assets Cash and short-term investments Accounts receivable, net $ 141 61 28 $ 52 7 17 $ 28 $ 34 43 Property, plant, and equipment, net Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable Notes payable (long term). 121 $ 198 $ 87 9 50 Paid-in capital 22 Retained earnings 30 Total liabilities and stockholders' equity $ 198 At December 31, 2018, total assets were $201 and total stockholders' equity was $52. There were no changes in notes payable or paid-in capital during 2019. a. What particular expense do you suppose accounts for the largest portion of the $61 cost of services provided? b. The cost of services provided amount includes all operating expenses (i.e., selling, general, and administrative expenses) except advertising expense. What do you suppose the primary reason was for DeBauge Realtors Inc. to separate advertising from other operating expenses? c. Calculate the effective interest rate on the notes payable for DeBauge Realtors Inc. d. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of dividends declared and paid to Jeff and Kristi DeBauge during the year ended December 31, 2019. (Hint: Do a T-account analysis of retained earnings.) What is the company's dividend policy? (What proportion of the company's earnings are distributed as dividends?) f. DeBauge Realtors Inc. was organized and operates as a corporation rather than a partnership. What is the primary advantage of the corporate form of business to a realty firm? What is the primary disadvantage of the corporate form? h. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. i. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. Required A Required B Required C and D Required E1 Required E2 Required F1 Required F2 Required H1 Required H2 Required I What particular expense do you suppose accounts for the largest portion of the $177 cost of services provided? Commissions expense Advertising expense Interest expense < Required A Required B >