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please answer both questions -(don't have much questions left)- Financial statements - Income statement for 20x4 and Comparative Balance Sheet for diving equipment manufacturer Lincoln
please answer both questions -(don't have much questions left)-
Financial statements - Income statement for 20x4 and Comparative Balance Sheet for diving equipment manufacturer Lincoln Corp (Linc) for December 31, 20x4 and 20X3 Lincoln Corp. - Income Statement as of December 31st, 20X4 Revenue $5,000 Cost of Goods Sold $3,200 Gross Profit $1,800 Operating expenses Operating Profit $1,350 $ 450 Loss on sale of equipment Income tax expense Profit for 20x4 $ $ $ 20 180 250 Lincoln Corp. - Balance Sheet - December 31 20X4 20x3 Assets Cash $ 2,350 $ 1,800 Accounts Receivable $ 450 $ 1,000 Inventory $ 800 $ 700 Prepaid Expenses $ 40 $ 80 Equipment $ 2,500 $ 1,500 Accumulated Depreciation $(1,350) $(1,000) Total Assets $ 4,790 $ 4,080 Liabilities & Shareholders' Equity Account Payable Operating expenses payable Income taxes payable Dividends Payable Long-term Notes Payable Common shares Retained Earnings Total Liabilities & Shareholders' Equity $ 680 $ 210 $ 120 $ 50 $ 300 $ 2,500 $ 930 $ 4,790 $ 350 $ 100 $ 0 0 $ 100 $ 70 $ 2,500 $ 960 $ 4,790 Additional Information for Lincoln Corp: 7) Operating expenses for 20X4 included depreciation for $500 8) Accounts payable relate exclusively to the purchase of inventory 9) Machine with a historical cost of $200 was sold at a loss of $20 a 10) A new machine was purchased during the year for $1,200 11) Dividends were declared 12) Long term notes payable were issued The equity ratio at December 20X4 was: Multiple Choice Between 0.41 and 0.61 Between 0.62 and 0.83 Not enough data provided to calculate it Equal or above 0.84 Equal or below 0.40Step by Step Solution
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