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DeBauge Realtors Incorporated is a realty firm owned by Jeff and Kristi DeBauge. The DeBauge family owns 1 0 0 % of the corporation's stock.

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 0.10371, enter 10.4%.)
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 0.10371, enter 10.4%.)
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 companys dividend policy? (What proportion of the companys earnings are distributed as dividends?)(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.)
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 companys overall liquidity. (Negative amount should be indicated by a minus sign. Amounts should be entered in the full amount and not in 000s.(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.
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