Problem 3-8A Preparing closing entries, financial statements, and ratios LO A1, A2, P3, P4 The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 No. Account Title 101 Cash Debit Credit $6,500 23,500 8,300 7,900 50,000 104 Short-term investments 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 173 Building 54,000 174 Accumulated depreciation-Building 183 Land 201 Accounts payable 65,520 15,500 2,600 3,400 3,000 700 7,600 68,500 6,500 Interest payable Rent payable Wages payable Property taxes payable Unearned professional fees Long-term notes payable 203 208 210 213 233 251 307 Common stock 318 Retained earnings 319 Dividends 401 Professional fees earned 406 Rent earned 407 Dividends earned 11,900 101,000 2,600 409 Interest earned 606 Depreciation expense-Building 612 Depreciation expense-Equipment 623 Wages expense 633 Interest expense 637 Insurance expense 640 Rent expense 652 Supplies expense 682 Postage expense 683 Property taxes expense 684 Repairs expense 688 Telephone expense 690 Utilities expense 30,500 4,600 7,500 10,400 6,800 2,400 4,500 2,500 3,300 $433,600 $433,600 Totals The December 31, 2016, credit balance of the Retained Earnings account was $126,000. Tybalt Construction is required to make a $8,000 payment on its longterm n otes payable during 2018 Required: 1a. Prepare the income statement for the calendar-year 2017 1b. Prepare the statement of retained earnings for the calendar-year 2017 1c. Prepare the classified balance sheet at December 31, 2017 2. Prepare the necessary closing entries at December 31, 2017 3. Use the information in the financial statements to compute the following ratios (note: round your answers to 2 decimal points; for example: 10.469 rounds to 10.47) Complete this question by entering your answers in the tabs I Required 1A Required 1B Required ic Required 2Required 3 Prepare the income statement for the calendar year 2017. TYBALT CONSTRUCTION Income Statement For Year Ended December 31, 2017 Revenues Total revenues Expenses Total expenses equired 1A Prey 1016 l: Next > Required 1A Required 1B Required 1C Requi Prepare the statement of retained earnings for th TYBALT CONSTRUCTION Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, Dec. 31, 2016 Retained earnings, Dec. 31, 2017 K Req complete this question by entering your answers in the tabs belo equired 1A Required 1BRequired 1C E Required 2 Required 3 epare the classified balance sheet at December 31, 2017 TYBALT CONSTRUCTION Balance Sheet December 31, 2017 Prev1 of 6Next > Required 3 Required 1A Required 1B Required 1C Required 2 Prepare the necessary closing entries at December 31, 2017. View transaction list X: Import a new list 1 Record the entry to close revenue account(s) 2 Record the entry to close expense account(s) 3 Record the entry to close income summary 4 Record the entry to close the withdrawals account. Required 1A Required 1B Required 1C Requir red 2 Required 3 Use the information in the financial statements to compute the following ratios: (a) Return on assets (total assets at December 31, 2016, was $200,000) Numerator: Denominator: Return on total assets Return on total assets (b) Debt ratio Numerator: Denominator: Debt ratio Debt ratio (c) Profit margin ratio (use total revenues as the denominator) Numerator: Profit margin Denominator: Profit margin 01% (d) Current ratio Numerator: Denominator: Current ratio Current ratio K Required 2 Required 3