The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 No. Account Title Debit Credit 101 Cash $ 5,500 104 Short-term investments 22,000 126 Supplies 9,900 128 Prepaid insurance 8,000 167 Equipment 45,000 168 Accumulated depreciationEquipment $ 22,500 173 Building 168,000 174 Accumulated depreciationBuilding 56,000 183 Land 68,630 201 Accounts payable 17,500 203 Interest payable 2,200 208 Rent payable 3,100 210 Wages payable 2,200 213 Property taxes payable 1,300 233 Unearned professional fees 7,700 251 Long-term notes payable 70,500 307 Common stock 5,500 318 Retained earnings 126,000 319 Dividends 12,800 401 Professional fees earned 103,000 406 Rent earned 18,000 407 Dividends earned 2,400 409 Interest earned 2,500 606 Depreciation expenseBuilding 12,320 612 Depreciation expenseEquipment 6,750 623 Wages expense 27,000 633 Interest expense 4,700 637 Insurance expense 9,300 640 Rent expense 11,400 652 Supplies expense 7,000 682 Postage expense 4,000 683 Property taxes expense 3,800 684 Repairs expense 6,900 688 Telephone expense 3,100 690 Utilities expense 4,300 Totals $ 440,400 $ 440,400 The December 31, 2016, credit balance of the Retained Earnings account was $126,000. Tybalt Construction is required to make a $6,500 payment on its long-term notes 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:

Prepare the income statement for the calendar year 2017. TYBALT CONSTRUCTION Income Statement For Year Ended December 31, 2017 Revenues $ 0 Total revenues Expenses Prepare the statement of retained earnings for the calendar year 2017. TYBALT CONSTRUCTION Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, Dec. 31, 2016 0 Retained earnings, Dec. 31, 2017 $ 0 Prepare the classified balance sheet at December 31, 2017. TYBALT CONSTRUCTION Balance Sheet December 31, 2017 $ 0 0 0 Use the information in the financial statements to compute the following ratios: = II Il (a) Return on assets (total assets at December 31, 2016, was $200,000) Numerator: 1 Denominator: Return on total assets 1 Return on total assets 0 (b) Debt ratio Numerator: 1 Denominator: Debt ratio 1 Debt ratio (c) Profit margin ratio (use total revenues as the denominator) Numerator: I Denominator: Profit margin 1 Profit margin 0 % (d) Current ratio Numerator: 1 Denominator: Current ratio / Current ratio 0 =