Question
PLK Corporations financial records at the end of the year included the following amounts: Cash: $90,000 Accounts Receivable: $50,000 Inventory: $30,000 Accounts Payable: $15,000 Notes
PLK Corporation’s financial records at the end of the year included the following amounts:
Cash: $90,000
Accounts Receivable: $50,000
Inventory: $30,000
Accounts Payable: $15,000
Notes Payable: $12,000
Retained Earnings (beginning of the year): $35,000
Common Stock: $75,000
Sales Revenue: $145,000
Cost of Goods Sold: $70,000
Operating Expenses: $25,000
Interest Expense: $6,000
Income Tax Expense: $9,000
Requirements:
Compute the gross profit.
Calculate the net income for the year.
Determine the ending retained earnings.
Calculate the current ratio.
Compute the debt ratio.
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