Please fill it out how it looks on the paper to better understand Multi-step Inc
ID: 2335852 • Letter: P
Question
Please fill it out how it looks on the paper to better understand Multi-step Income Statements The adjusted trial balance of Crane Distributors on Decem 2016, is shown below. ber 31, LO2 CRANE DISTRIBUTORS Adjusted Trial Balance December 31, 2016 Debit Credit Cash. ..110,200 .94,000 Inventory. Prepaid insurance Supplies 2,400 6,400 85,000 Accumulated depreciation . .. $ 35,000 90,000 105,000 42,000 785,800 Salaries expense 123,000 40,000 6,400 4,000 16,000 6,800 Utilities expense. $1,057,800 $1,057,800Explanation / Answer
Crane Distributors Multi Step Income Statement For the Year Ended December 31st,2016 Sales Revenue $ 7,85,800.00 Cost of goods sold $ 5,13,400.00 Gross Profit $ 2,72,400.00 Operating Expenses Salaries Expenses $ 1,23,000.00 Rent Expense $ 40,000.00 Supplies Expense $ 6,400.00 Depreciation Expense $ 16,000.00 Utilities Expense $ 4,000.00 Insurance Expenses $ 6,800.00 Total Operting Expenses $ 1,96,200.00 Operating Income $ 76,200.00 Net Income befor tax $ 76,200.00 Tax $ 30,000.00 Net Income after tax $ 46,200.00 Crane Distributors Retained Earnings Statements For the year ended december 31st,2016 Beginning Retained Earnings $ 42,000.00 Add: Net Income $ 46,200.00 Ending Retained Earnings $ 88,200.00 Crane Distributors Balance sheet As At December 31st,2016 Assets Current Assets: Cash $ 20,200.00 Accounts Receivable $ 1,10,200.00 Inventory $ 94,000.00 Prepaid Insurance $ 2,400.00 Supplies $ 6,400.00 Total Current Assets $ 2,33,200.00 Delivery Equipment $ 85,000.00 Less: Accumulated Depreciation $ -35,000.00 Delivery Equipment(Net) $ 50,000.00 Total Assets $ 2,83,200.00 Liabilities & Stockholder's equity Current Liabilities Accounts Payable $ 90,000.00 Total Current Liabilities $ 90,000.00 Total Liabilitiess $ 90,000.00 Stockholder's Equity Common Stock $ 1,05,000.00 Retained Earnings $ 88,200.00 Total Stockholder's equity $ 1,93,200.00 Total Liabilities & Stockholder's Equity $ 2,83,200.00 a) Current Ratio Current Assets/Current Liabilities Current Assets= $ 2,33,200.00 Current Liabilities= $ 90,000.00 Current Ratio=($233200/$90000) 2.59 :1 b) Debt to Total Assets Ratio=Debt/Total Assets Debt= 90000 Total Assets= $ 2,83,200.00 Debt to Total Assets Ratio=($90000/$283200) $ 0.32 c) Return to total Assets=Net Income before interest & tax/Total Assets Net Income before interest and tax $ 76,200.00 Total Assets $ 2,83,200.00 Return to total Assets=($76200/$283200) 0.27