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: $ 145 59 29 $ 57 8 15 $ 34 For the Year Ended December 31, 2019 Comissions 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 Property, plant, and equipment, bet Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable Notes payable long term) Paid-in capital Retained earnings Total liabilities and stockholders' equity 533 40 124 5 197 591 48 25 25 $ 197 At December 31, 2018, total assets were $201 and total stockholders' equity was $50. There were no changes in notes payable or pald-in capital during 2019 Required: Required: a. What particular expense do you suppose accounts for the largest portion of the $59 cost of services provided? b. The cost of services provided amount includes all operating expenses (ie, 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?) 1. 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. 1. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. Required A Required a Required and D Required El Required E2 Required F1 Required F2 Required H1 Required H2 Required 1 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.) (Enter your percentage answer to the nearest whole number) Show less 17 C Efective interest rate d. Average income tax rate Required: a. What particular expense do you suppose accounts for the largest portion of the $59 cost of services provided? b. The cost of services provided amount includes all operating expenses (i.e., selling, general, and administrative expenses) exc advertising expense. What do you suppose the primary reason was for DeBauge Realtors Inc. to separate advertising from o 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 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 Requimd El Required E2 Required F1 Required F2 Required H1 Required H2 Required 1 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.) (Amounts should be entered in the full amount and not in 000s. (Example - enter 20,000 and not 20). Since dividends are a deduction from retained earnings, enter the amount of dividends with a minus sign.) Show less Dividends declared and paid in 2019 b. The cost of services provided amount includes all operating expenses (i.e., selling, general, and administrative expe advertising expense. What do you suppose the primary reason was for DeBauge Realtors Inc. to separate advertisin 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 (Hint: Do a T-account analysis of retained earnings.) What is the company's dividend policy? (What proportion of the earnings are distributed as dividends?) f. DeBauge Realtors Inc. was organized and operates as a corporation rather than a partnership. What is the primary ac 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 liq i. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. Required A Required B Required and D Required E1 Required E2 Required F1 Required F2 Required H1 Required H2 Required I Calculate the amount of working capital and the current ratio at December 31, 2019. (Negative amount should be indicated by a minus sign. Amounts should be entered in the full amount and not in 00s. (Example - enter 20,000 and not 20). Round your ratio answer to 2 decimal places.) Show less Working capital Current ratio 3.88 b. The cost of services provided amount includes all operating expenses (l.e., selling, general, and administrative expenses) exce advertising expense What do you suppose the primary reason was for DeBauge Realtors Inc. to separate advertising from oth 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 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. 1. 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! Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. (Round your answers to 2 decimal places.) ROI Margin Turnover ROE % % %