(TCOs B and D) The following items are taken from the financial statements of Ashe Company for 2012:

Equipment	$100,000
Accounts Receivable	12,000
Accounts Payable	9,000
Cost of Goods Sold	72,000
Utilities Expense	11,000
Depreciation Expense	17,000
Insurance Expense	9,000
Common Stock	200,000
Dividends	12,000
Rent Expense	3,000
Note Payable (due 2014)	40,000
Advertising Expense	14,000
Prepaid Insurance	17,000
Retained Earnings (beginning)	44,000
Accumulated Depreciation	50,000
Salaries Expense	60,000
Salaries Payable	3,500
Net sales	205,000
Supplies	4,000
Supplies Expense	5,000

Instructions (a) Calculate the net income. (18 points) (b) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2012. (7 points) (c) Calculate the gross profit percentage. (5 points) (Points : 30)

Question 14.14.(TCO D) The following items are taken from the financial statements of SRW Company for 2012:

Cash	$375,000
Accounts Receivable	125,000
Prepaid Insurance	100,000
Accounts Payable	88,000
Unearned Service Revenue	15,000
Equipment, net of accumulated depreciation	177,000
Common Stock	125,000
Retained Earnings 12/31/2011	106,000
Long-term debt	336,500
Service revenue	225,000
Cost of Goods Sold	62,500
Rent expense	30,000
Supplies expense	8,000
Insurance expense	18,000

Instructions (a) Please create a classified Balance Sheet in good form for the year ended 2012. (25 points)

(b) Please calculate the current ratio. (5 points)

(Points : 30)