Problem $1$:

The following relate to Farr Corporation for the month of April: Excel form.

Sales Revenue $$160,000$

Gain on the Sale of Land $$15,000$

Cost of Goods Sold $$79,000$

Tax Expense $$12,000$

Selling Expense $$10,000$

Dividends Paid $$6,000$

Loss on Lawsuit $$14,000$

$1.1$ Determine Farr$$s gross profit for the month of April.

$2.$ Determine Farr$$s net income for the month of April.

$3.$ If retained earnings at the beginning of April were $$1,200,000,$ what would retained earnings be at the end of April?

Problem $2$:

Maverick Company has the following account balances at the end of December. Show that Maverick$$s balance sheet would balance using the accounting equation. In excel form.

Cash $$18,000$

Capital Stock $$100,000$

Inventory $$16,000$

Note Payable $$65,000$

Retained Earnings $$39,000$

Building $$150,000$

Equipment $$20,000$