Gerrard Construction Co. is an excavation contractor. The following summarized data (in thousands) are taken from the December 31 2019, financial statements: $ 101,400 34,600 19,900 $ 46,989 14, 270 9 Bee $ 22,830 For the Year Ended December 31, 2019: Net revenues Cost of services provided Depreciation 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, net Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payabie Notes payable cone ter $ 8,500 29.60 235) Bea 22 de 1680 Total abilities and stockholders equit 2 At December 31, 2018, total assets were $247400 and total stockholders equity was $98. 600. There were no changes in notes payable on paid-in capital during 2019, At December 31, 2018, total assets were $247,400 and total stockholders' equity was $98,600. There were no changes in notes payable or paid in capital during 2019. Required: 4. The cost of services provided amount includes 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 expenses? From a conceptual point of view, should depreciation be considered a "cost" of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. 1. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overalt liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis of retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required B. Required B2 Required C Required E Recuired F. Required G Required H Required I The cost of services provided amount includes 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 expenses? The owners of the firm would be interested in knowing what the approximate "economic cost of fixed asset utilization is because a substantial portion of the firm's profits will need to be invested in replacement machinery and equipment The depreciation expenditure does not affect the finans al position of Gerrard Construction Co. Required A At December 31, 2018. total assets were $247.400 and total stockholders' equity was $98,600. There were no changes in notes payable or paid-in capital during 2019. Required: a. The cost of services provided amount includes 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 expenses? From a conceptual point of view, should depreciation be considered a "cost" of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. f. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis of retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Required C Required E Required F. Required G Required H Required I From a conceptual point of vievi, should depreciation be considered a "cost" of providing services? of 9 10 Next > 2010, total assets were $247.400 and total stockholders' equity was $98,600. There were no changes in notes bayable or paid-in capital during 2019. Required: 2. The cost of services provided amount includes 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 expenses? From a conceptual point of view, should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) 3. Calculate the amount of total current assets. 7. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate RO (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis e retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Required c Required E Required . Required G Required Required I Why doesn't the company have a Merchandise Inventory account? As an excavation contractor, the firm sell goods to ts customers, but does not provide services, As an excavation contractor, the firm orov des services to its austomers, but does not sell 9000 Required Heures Requlred: a. The cost of services provided amount includes 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 expenses? From a conceptual point of view. should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. 1. Why doesn't the company have a Merchandise Inventory account? 9. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint Do a T-account analysis of retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Recaired 2 Required B: Required B2 Required C. Required E Required F Required G Required H Required 1 Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. (Enter your answers in whole dollars (Estample enter 20.000.000 and not 20,000). Round your ratio answer to 2 decimal places. e... 32.16 Currenteratis ne company's overall liquidity is Required IRENA - Next bayable of palan Capital during 2019. Required: a. The cost of services provided amount includes 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 expenses? From a conceptual point of view, should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. f. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis of retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required BE Required B2 Required C Required E Required F Required G Requires Required I Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. Round Turnover answer to 2 decimal places and other answer to decimal place) 96 5% Bet Margin Turnover ROE Required G Required Next At December 31, 2018, total assets were $247,400 and total stockholders equity was $98,600. There were no changes in notes payable or paid-in capital during 2019. Required: a. The cost of services provided amount includes 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 expenses? From a conceptual point of view. should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co? To which specific balance sheet accounts should a financial analyst relate these expenses? G. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. 1. Why doesn't the company have a Merchandise Inventory account? 9. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI including margin and turnover) and ROE for the year ended December 31, 2019 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis of retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required Bi Required B2 Required 6 Required E Required fl Required G Required H Required Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis of retained earnings.) (Enter your answers in vele dollars (Examplenter Rol000,000 and not 20.000) Dividendis declared and paid Required H