Need help in finding the correct percentage. Please show work clearly. Thank you!
S 117,050 9,600 16,000 6,000 2,150 AFFORDABLE LAWN CARE, INC. Balance Sheet December 31, Current Year Assets Cash Accounts receivable Unexpired insurance Prepaid rent Supplies Trucks $ 300,000 Accumulated depreciation trucks (240,000) Mowing equipment 40.000 Accumulated depreciation mowing equipment (24,000) Total assets Llabilities Accounts payable Notes payable Salaries payable Interest payable Income taxes payable Uneamed mowing revenue 60,000 16.000 226.800 IS 3,000 100.000 1.800 300 2,100 1,800 Total liabilities S 109,000 Stockholders' equity S Capital stock Retained earnings 40,000 77.800 Total stockholders' equity Total liabilities and stockholders' equity 117.800 S 226.800 $ 340,000 AFFORDABLE LAWN CARE, INC. Income Statement For the Year Ended December 31, Current Year Revenues: Mowing revenue tamed Expenses Insurance expense 4.800 Office rent expense 72,000 Supplies expense 10.400 Salary expense 120,000 Depreciation expense: trucks 60,000 Depreciation expense: mwing equipment 8.000 Repair and maintenance expense 6,000 Fuel expense 3,000 Miscellaneous expense 10,000 Interest expense 8.000 Income before as Income taxes expense Net income 300.200 $ 39,800 12.000 $ 27.800 Credits Debits $ 117,85e 9,600 16.ee 6.08e 2,150 300.000 $ 240,00 48,ese Cash Accounts receivable Unexpired insurance Prepaid rent Supplies Trucks Accumulated depreciation: trucks Mowing cquipment Accumulated depreciation: mowing equipment Accounts payable Notes payable Salaries payable Interest payable Income taxes payable Unearned mowing revenue Capital stock Retained earnings Dividends Mowing revenue carned Insurance expense office rent expense Supplies expense Salary expense Depreciation expense: trucks Depreciation expense: mowing equipment Repair and maintenance expense Fuel expense Miscellaneous expense Interest expense Income taxes expense 24.000 3.000 100.000 1.888 320 2,180 1,820 40,w2e 60.eee 10,ege 348,888 4,888 72,eee 18,420 120,000 62. Be 8,888 6.000 3. Bee 10. eee 6.000 12.00 813,828 813,220 Required: a-1. Prepare an income statement for the year ended December 31. Current Year. a-2. Prepare a statement of retained earnings for the year ended December 31. Current Year. a-3. Prepare the company's balance sheet dated December 31, Current Year. b. Prepare the necessary year-end closing entries. c. Prepare an after-closing trial balance. d. Using the financial statements prepared in port a, briefly evaluate the company's profitability and liquidity. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg A1 Reg AZ Rey A3 Req Reqc ReqD Using the financial statements prepared in part a, briefly evaluate the company's profitability and liquidity (Round your percentage answers to 1 decimal place (ie. .1234 should be entered as 12.3)) For the year ended December 31, Current Year, the company generated net income of S 27.800 on $ 340,000 sales. Thus, net income as a percentage of sales was %. Moreover, the S 27.800 profit approximately represented a return an average stockholders' equity of approximately 23.6 %, which is a fairly strong return on investment. The company's balance sheet at December 31, Current Year, reports cash and accounts receivable totaling S 126,650 It also reports various payables liabilities) totaling 109,000 Depending on when the $ 100.000 note payable reported in the balance sheet is due, the company may be extremely liquid. If this abligation is not due in the near future. has the 126,650 in cash and accounts receivable to cover obligations of only S 9,000 Moreover, company IS 1.800 of the S 9,000 of obligations, the Unearned Mowing Revenue amount will not require a cash outlay. Even if this note is due shortly, the company still appears to be liquid
