Question
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).
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