Questions are listed A- i.

Gerrard Construction Co. is an excavation contractor. The following summarized data (in thousands) are taken from the December 31, 2019, financial statements: $ 96,660 34,200 19, see $ 42,900 11,400 9,600 $ 21,900 For the Year Ended December 31, 2019: Net revenues Cost of services provided Depreciation expense Operating income Interest expense Income tax expense Net income At December 31, 2019: Assets Cash and short-term investments Accounts receivable, net Property, plant, and equipment, net Total assets Liabilities and holders' Equity Accounts payable Income taxes payable Notes payable (long term) Paid-in capital Retained earnings Total liabilities and stockholders' equity $ 8,400 29,400 232, 280 $ 270,000 $ 4,500 4,880 142, see 30,000 88,200 $ 270, eee At December 31, 2018, total assets were $246.000 and total stockholders' equity was $97.800. There were no changes in notes payable or pald-in capital during 2019. Required: a. The cost of services provided amount includes all operating expenses (selling, general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost" of providing services? b. Why do you suppose the amounts depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. 1. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. . Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019 *** Paid-in capital Retained earnings Total liabilities and stockholders' equity 30,000 88, 200 $ 270, 880 At December 31, 2018. total assets were $246,000 and total stockholders' equity was $97.800. There were no changes in notes payable or paid-in capital during 2019. Required: a. The cost of services provided amount includes all operating expenses (selling. general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. t. Why doesn't the company have a Merchandise Inventory account? 9. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis of retained earnings.) Compute this question by entering your answers in the tabs below. Required Al Required A2 Required B1 Required B2 Required C Required E Required F Required G Required H Required I The cost of services provided amount includes all operating expenses (selling, general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? The owners of the firm would be interested in knowing what the approximate "economic cost of fived asset utilization is, because a substantial portion of the firm's profts will need to be invested in replacement machinery and equipment The depreciation expenditure does not affect the financial position of Gerrard Construction Co. Required A2 > Required: a. The cost of services provided amount includes all operating expenses (selling general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. 4. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Required C Required E Required F Required G Required H Required 1 From a conceptual point of view, should depreciation be considered a "cost" of providing services? Yes No Required: a. The cost of services provided amount includes all operating expenses (selling, general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost" of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) c. Calculate the amount of total current assets. 1. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Required C Required E Required F Required G Required H Required 1 Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? (Select all that apply.) Depreciation expense is high because Gerrard Construction Co. is a highly capital-intensive firm. Depreciation expense is high because the firm has a large amount of long-term debt. Interest expense is high because the firm has a large amount of long-term debt. Interest expense is high because Gerrard Construction Co. is a highly capital-intensive firm. Total liabilities and stockholders' equity $ 270, eee At December 31, 2018, total assets were $246,000 and total stockholders' equity was $97,800. There were no changes in notes payable or paid-in capital during 2019. Required: a. The cost of services provided amount includes all operating expenses (selling. general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. f. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required 81 Required B2 Required Required e Required F Required G Required H Required 1 Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) (Round your answer to 1 decimal place. (e.g. 32.1)) Average income tax rate Required: a. The cost of services provided amount includes all operating expenses (selling. general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. t. Why doesn't the company have a Merchandise Inventory account? 9. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Required cRequired E Required F. Required G Required H Required i Calculate the amount of total current assets. (Enter your answer in whole dollars (Escample - enter 20,000,000 and not 20,000)) Cash and short-term investments Accounts receivable, net Total current assets $ Required: a. The cost of services provided amount includes all operating expenses (selling general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. 4. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Required C Required E Required F Required G Required H Required 1 From a conceptual point of view, should depreciation be considered a "cost" of providing services? Yes No Required: a. The cost of services provided amount includes all operating expenses (selling, general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost" of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) c. Calculate the amount of total current assets. 1. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Required C Required E Required F Required G Required H Required 1 Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? (Select all that apply.) Depreciation expense is high because Gerrard Construction Co. is a highly capital-intensive firm. Depreciation expense is high because the firm has a large amount of long-term debt. Interest expense is high because the firm has a large amount of long-term debt. Interest expense is high because Gerrard Construction Co. is a highly capital-intensive firm. Total liabilities and stockholders' equity $ 270, eee At December 31, 2018, total assets were $246,000 and total stockholders' equity was $97,800. There were no changes in notes payable or paid-in capital during 2019. Required: a. The cost of services provided amount includes all operating expenses (selling. general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. f. Why doesn't the company have a Merchandise Inventory account? g. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required 81 Required B2 Required Required e Required F Required G Required H Required 1 Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) (Round your answer to 1 decimal place. (e.g. 32.1)) Average income tax rate Required: a. The cost of services provided amount includes all operating expenses (selling. general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? c. Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) e. Calculate the amount of total current assets. t. Why doesn't the company have a Merchandise Inventory account? 9. Calculate the amount of working capital and the current ratio at December 31, 2019. Assess the company's overall liquidity. h. Calculate ROI (including margin and turnover) and ROE for the year ended December 31, 2019. 1. Calculate the amount of dividends declared and paid during the year ended December 31, 2019. (Hint: Do a T-account analysis retained earnings.) Compute this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Required cRequired E Required F. Required G Required H Required i Calculate the amount of total current assets. (Enter your answer in whole dollars (Escample - enter 20,000,000 and not 20,000)) Cash and short-term investments Accounts receivable, net Total current assets $