DeBauge Realtors Incorporated 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, 2022, financial statements:

For the Year Ended December 31, 2022: Commissions revenue$ 142Cost of services provided61Advertising expense28Operating income$ 53Interest expense6Income tax expense18Net income$ 29

At December 31, 2022: Assets Cash and short-term investments$ 33Accounts receivable, net43Property, plant, and equipment, net125Total assets$ 201

Liabilities and Stockholders' Equity Accounts payable$ 98Income taxes payable6Notes payable (long term)47Paid-in capital22Retained earnings28Total liabilities and stockholders' equity$ 201

At December 31, 2021, total assets were $205 and total stockholders' equity was $50. There were no changes in notes payable or paid-in capital during 2022.

Required:

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 Incorporated to separate advertising from other operating expenses?

C. Calculate the effective interest rate on the notes payable for DeBauge Realtors Incorporated.

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, 2022. (Hint: Do a T-account analysis of retained earnings.) What is the companys dividend policy? (What proportion of the companys earnings are distributed as dividends?)

F. DeBauge Realtors Incorporated 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, 2022. Assess the companys overall liquidity.

I. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2022.