QUESTION 4 On March 31, 2012, Destin Incorporated reported the following balance sheet: Assets Cash Inventory Prepaid Insurance Equipment (net) Total Assets 3,000 14,000 3,000 20.000 40,000 Liabilities & Owners' Equity Loan Payable 10,000 5,000 Common Stock 25,000 Retained Eamnings Total Liabilities and OE 40,000 During the month ended April 30, 2012, Destin reports the following activities: 1. They earn revenue totaling $16,000 related to selling inventory, all received in cash. The cost of the inventory sold is $9,000. 2. Employees earn $2,000, all of which is paid in cash during April. 3. Other operating expense total $1,000, all paid in cash during April. 4. They purchase inventory for cash at a total cost of $10,000. Other information: a. The equipment was purchased for $24,000. Depreciation on the equipment is $1,000 per month. b. The insurance policy was purchased on January 1, 2012, and covers six months. c. Destin borrowed $10,000 (the loan payable) on March 31, 2012. The loan must be repaid, with interest, on September 30, 2012. The annual interest rate is 12%. Required: 1. Calculate Destin's net income for the month ended April 30, 2012. 2. Calculate Destin's retained earnings as of April 30, 2012 3. Calculate the total assets as of April 30, 2012 4. Calculate the total liabilities as of April 30, 2012. 5. Calculate the total owners' equity as of April 30, 2012 6. Calculate the balance of Accumulated depreciation as of April 30, 2012