USE THE FOLLOWING INFORMATION FOR THE NEXT SEVEN QUESTIONS. (Questions 1 of 7) Sara Company (which uses a perpetual inventory system) has the following account balances after adjusting entries at December 31 2020 Debit Credit Account Amount $222,000 $222,000 Cash 100,000 100,000 Merchandise Inventory (12/31/2020) Equipment 120,000 120,000 Accounts Receivable 105,000 105,000 350,000 350,000 875,000 875,000 Cornnon Stock ($.50 par) Sales Rent Expense Bonds Payable (due 2050) 67,000 67,000 120,000 120,000 27,000 27,000 Accounts Payable 10,000 10,000 Dividends Treasury Stock, Common (19,000 shares) 42,000 42,000 85,000 85,000 Preferred Stock 6% ($10 par) 260,000 260,000 Land 8,000 8,000 Paid-in Capital in Excess of Par Value, Preferred HEBUNDY Z; CIU Dividends 10,000 10,000 42,000 42,000 Treasury Stock, Common (19,000 shares) Preferred Stock 6% ($10 par) 85,000 85,000 Land 260,000 260,000 8,000 8,000 720,000 720,000 20,000 20,000 18,000 18,000 56,000 56,000 Paid-in Capital in Excess of Par Value, Preferred Cost of Goods Sold Interest Expense Unearned Revenue Paid Capital from Treasury Stock Transactions, Common Allowance for Doubtful Accounts Operating Expenses Accumulated Depreciation Equipment Paid-in Capital in Excess of Par Value, Common Retained Earnings (1/1/2020) 5,000 5,000 95,000 95,000 30,000 30,000 117,000 117,000 70,000 70,000 TOTALS $3,552,000 $1,761,000 $1,761,000 HINT: PREPARE A COMPLETE SET OF FINANCIAL STATEMENTS AND THEN ANSER THE QUESTIONS The net income (loss) for the year is: B I $(7,000) $(27,000) $29,000 $155,000 E. None of the above HINT: PREPARE A COMPLETE SET OF FINANCIAL STATEMENTS AND THEN ANSER THE QUESTIONS The gross margin percent for the year is (rounded to nearest whole percent): 21% . 3% . None of the above C 18 % D E. 82% HINT: PREPARE A COMPLETE SET OF FINANCIAL STATEMENTS AND THEN ANSER THE QUESTIONS The total paid-in capital at December 31, 2020 is: A. None of the above $435,000 c $560,000 $574,000 $616,000 HINT: PREPARE A COMPLETE SET OF FINANCIAL STATEMENTS AND THEN ANSER THE QUESTIONS The net realizable value of the accounts receivable at December 31, 2020 is: A. None of the above $100,000 B. C. $105,000 D $110,000 E $95,000 HINT: PREPARE A COMPLETE SET OF FINANCIAL STATEMENTS AND THEN ANSER THE QUESTIONS The total liability percent for Sara Company at December 31, 2020 is (rounded to nearest whole percent) A None of the above 8 11% C 21% OD 39% E 19%