To follow is the year end balances in the accounts of Vern Corporation at 12/31/
ID: 2502657 • Letter: T
Question
To follow is the year end balances in the accounts of Vern Corporation at 12/31/13
Common Stock.......................................$ 20,000
Equipment................................................$24250
Accounts payable....................................$3100
Accounts Receivable.............................$10150
Prepaid rent............................................$380
salary & wages expenses.......................$5840
retained earnings, beggining 1/1/2013...$13960
cash..............................................................$20955
notes payable (due in 2018)....................$4700
sales revenue............................................$20450
Accumulated Depreciation-equipment...$6600
depreciation expense.................................$3200
dividends.......................................................$2800
income tax expense.....................................$700
income tax payable......................................$300
interest expenses........................................$350
interesr payable............................................$175
rent expense.................................................$660
Requirements : Calculate the following ratios
a) Gross Profit %
b) net profit %
c) Working Capital
d) Current ratio
e) Debt to total Assets.
[useful information]
- Sales Revenue.............$ 20,450
-Total expenses..............$10, 750
- Net income.....................$ 9700
- retained earnings.........$ 20,860
- total asset......................$ 49,135
- total liabilities.................$8275
- total equity.......................$ 40,860
Explanation / Answer
TOTAL EXPENSE = 10750
DIRECT EXPENSE = TOTAL EXPENSE - OPERATING EXPENSES
DIRECT EXPENSE = 10750