Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

MNQ Industries presents the following financial information: Cash: $75,000 Accounts Receivable: $45,000 Prepaid Expenses: $6,000 Supplies: $8,000 Accounts Payable: $12,000 Salaries Payable: $6,000 Long-term Debt:

MNQ Industries presents the following financial information:

Cash: $75,000

Accounts Receivable: $45,000

Prepaid Expenses: $6,000

Supplies: $8,000

Accounts Payable: $12,000

Salaries Payable: $6,000

Long-term Debt: $50,000

Common Stock: $70,000

Retained Earnings (beginning of the year): $35,000

Service Revenue: $130,000

Wages Expense: $35,000

Supplies Expense: $8,000

Rent Expense: $9,000

Utilities Expense: $5,000

Interest Expense: $3,000

Income Tax Expense: $9,000

Requirements:

Compute the net income for the year.

Determine the ending retained earnings.

Calculate the quick ratio.

Compute the total liabilities and equity.

Calculate the return on assets (ROA).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Volume 1

Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

9th Canadian edition

978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096

More Books

Students also viewed these Accounting questions

Question

1. Too understand personal motivation.

Answered: 1 week ago