For the year ended December 31, 2013

Net revenues 32, 200

Cost of services provided 11, 400

Depreciation expense 6, 500

Operating Income 14, 300

Interest expense 3, 800

Income tax expense 3, 200

Net income 7, 300

Assets

Cash and short term investment 2, 800

Accounts receivable net 9, 800

Property plant and equipment net 77, 400

Total assets 90,000

Liabilities and stockholders equity

Account payable 1, 500

Income taxes payable 1,600

Notes payable long term 47, 500

Paid in capital 10, 000

Retaining earnings 24,900

Total liabilities and stockholders equity 90,000

a. the cost of services provided amount included all operating expenses selling general and administrative expenses except depreciation expense, what do you suppose the primary reason was for management to separate depreciation from other operating expense? from a conceptual point view should depreciation be considered a cost of providing services?

b. why do you suppose the amounts of depreciation expense and interest expense are a high for gerrard construction co? to which specific balance sheet account should a financial analyst relate these expense?

c. calculate the company average income tax rate (hint you must first determine the earning before taxes)

d. explain why the amount of income tax expenses is different from the amount of income taxes payable

e. calculate the amount of total current assets. why do you suppose this amount is so low relative to total assets

f. why doesnt the company have a Merchandise Inventory account?

g calculate the amount of working capital and the current ratio at Dec 31, 2013 assess the company overall liquidity

h calculate ROI including margin and turnover and ROE for the year ended Dec 31, 2013 assess the company overall profitability . what additional information would you like to have to increase the validity of this assessment

i. calculate the amount of dividends declared and paid during the year ended December 31, 2013 hint do a t account analysis of retained earnings