The following adjustments were provided Fees of $25,000, received in advance during the year were erroneously recorded in Sales 1. revenue. 2. 3. 4. 5. $50,000 recorded as unearned service was earned during the year. Prepaid Insurance expired during the year $30,000. (Admin Expense) Equipment is expected to last for 5 years. Salvage value is $200,000. (Depreciation in COGS) Office salaries and wages earned but unrecorded and unpaid December 31, 2020, $20,000. (Admin Expense) A physical count of inventory on 12/31/2020 shows that $100,000 worth is remaining. Provide a bad debt allowance of $ 50,000. (Selling Exp) Provide income taxes of 20% of income before taxes Dividends of 50,000 was declared (but not paid) for the year. 6. 7. 8. 9. B. For JKF, compute the following ratios (use the definitions provided in the exam). 1 N min Operating Margin (Inc from Operations / Net Sales) Sales Margin (NI / Net Sales) Working Capital (CA-CL) Current Ratio (CA/CL) Debt to Equity ratio (Tot Liabilities / Tot Equity) The following adjustments were provided Fees of $25,000, received in advance during the year were erroneously recorded in Sales 1. revenue. 2. 3. 4. 5. $50,000 recorded as unearned service was earned during the year. Prepaid Insurance expired during the year $30,000. (Admin Expense) Equipment is expected to last for 5 years. Salvage value is $200,000. (Depreciation in COGS) Office salaries and wages earned but unrecorded and unpaid December 31, 2020, $20,000. (Admin Expense) A physical count of inventory on 12/31/2020 shows that $100,000 worth is remaining. Provide a bad debt allowance of $ 50,000. (Selling Exp) Provide income taxes of 20% of income before taxes Dividends of 50,000 was declared (but not paid) for the year. 6. 7. 8. 9. B. For JKF, compute the following ratios (use the definitions provided in the exam). 1 N min Operating Margin (Inc from Operations / Net Sales) Sales Margin (NI / Net Sales) Working Capital (CA-CL) Current Ratio (CA/CL) Debt to Equity ratio (Tot Liabilities / Tot Equity)