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 $ $140$

Cost of services provided $58$

Advertising expense $29$

Operating income $ $53$

Interest expense $5$

Income tax expense $16$

Net income $ $32$

At December $31,2022$:

Assets

Cash and short$-$term investments $ $32$

Accounts receivable, net $41$

Property, plant, and equipment, net $121$

Total assets $ $194$

Liabilities and Stockholders' Equity

Accounts payable $ $85$

Income taxes payable $8$

Notes payable $($long term$)48$

Paid$-$in capital $24$

Retained earnings $29$

Total liabilities and stockholders' equity $ $194$

At December $31,2021,$ total assets were $$204$ and total stockholders' equity was $$53.$ There were no changes in notes payable or paid$-$in capital during $2022.$

Required:

What particular expense do you suppose accounts for the largest portion of the $$58$ cost of services provided?

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?

Calculate the effective interest rate on the notes payable for DeBauge Realtors Incorporated. $($Round your answer to $1$ decimal place. For example, if your answer is $0\mathrm{.}10371,$ enter $10\mathrm{.}4\%.)$

Calculate the company's average income tax rate. $($Hint: You must first determine the earnings before taxes.$)($Round your answer to $1$ decimal place. For example, if your answer is $0\mathrm{.}10371,$ enter $10\mathrm{.}4\%.)$

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 company$$s dividend policy? $($What proportion of the company$$s earnings are distributed as dividends?$)($Amounts should be entered in the full amount and not in $000$s$.($Example $-$ enter $20,000$ and not $20).$ Since dividends are a deduction from retained earnings, enter the amount of dividends with a minus sign.$)$

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?

Calculate the amount of working capital and the current ratio at December $31,2022.$ Assess the company$$s overall liquidity. $($Negative amount should be indicated by a minus sign. Amounts should be entered in the full amount and not in $000$s$.($Example $-$ enter $20,000$ and not $20).$ Round your current ratio answer to $2$ decimal places.$)$

Calculate ROI $($including margin and turnover$)$ and ROE for the year ended December $31,2022.($Do not round your intermediate calculations for margin and turnover. Round your final answers to $2$ decimal places.$)$Answer is not complete.

Calculate the amount of working capital and the current ratio at December $31,2022.$

Note: Negative amount should be indicated by a minus sign. Amounts should be entered in the full amount and not in $000$ s$.$

$($Example $-$ enter $20,000$ and not $20).$ Round your current ratio answer to $2$ decimal places.