The adjusted trial balance for Anara Co. as of December 31, 2013, follows.

P. Anara invested $40,000 cash in the business in exchange for more common stock during year 2013(the December 31, 2012, credit balance of retained earnings was $52,800). Anara Company is required to make a $8,400 payment on its long-term notes payable during 2014.

Required

1. Prepare the income statement and the statement of retained earnings for the calendar year 2013 and the classified balance sheet at December 31, 2013.

2. Prepare the necessary closing entries at December 31, 2013.

3. Use the information in the financial statements to calculate these ratios: (a) return on assets (total assets at December 31, 2012, were $160,000), (b) debt ratio, (c) profit margin ratio (use total revenues as the denominator), and (d) current ratio. Round ratios to three decimals for parts a and c, and to two decimals for parts b and d. Check (1) Total assets (12/31/2013), $164,700; Net income, $28,890

ANARA COMPANY Adjusted Trial Balance December 31,2013 No. Account Title Debit Credit 0 Cash 104 Short-term investments 126 Supplies 128 Prepaid insurance... 167 Equipment 68 Accumulated depreciation Equipment 173 Building 174 Accumulated depreciation-Building 183 Land 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 233 Unearned professional fees 251 Long-term notes payable 307 Common stock 318 Retained earnings... 319 Dividends 401 Professional fees earned 406 Rent earned 407 Dividends earned 409 Interest earned 606 Depreciation expse-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 Uilities expense $ 7.400 1,200 4,600 1,000 24,000 $4,000 100,000 0,000 3.500 1,750 1,280 3.330 750 40,000 40,000 52,800 8,000 59.600 4,500 1,000 1,320 1.000 18,500 1,550 1,525 3,600 1.000 410 4,825 679 521 Totals 224230 $224230