Use the following information to answer the next six questions: All balances are as of 12/31/2019 unless specified otherwise.
Loss on the 62,250 Income Tax Expense 48,750
Sale of Equipment
Short Term Investments 1,500 Inventory 97,500
Retained Earnings,
1/1/1928 1,000 Gain on Sale of
Equipment 27,500
Goodwill 50,000 Cost of Goods Sold 204,000
Common Stock ? Notes Payable 5/1/20 12,500
Cash 70,000 Sales Revenue 447,500
Accumulated
Depreciation 50,000 Dividends 10,000
Notes Payable, due
12/31/21 104,500 Prepaid Expenses 2,500
Furniture 83,000 Accrued Expenses 28,000
Equipment 372,500 Accounts Receivable 42,000
Operating Expenses 43,000 Accounts Payable 36,000
1. Determine the Working Capital as of December 31, 2019.
a. 137,000
b. 5.9305
c. 187,500
d. 149,500
2. Determine Retained Earnings and Cash as of 12/31/2019.
Retained Earnings Cash
A. $398,000 $70,000
B. $281,000 $80,000
C. $422,750 $517,500
D. $388,000 $70,000
E. $436,750 $80,000
3. Determine Total Liabilities as of 12/31/2019.
a. $48,500
b. $76,500
c. $153,000
d. $168,500
e. $181,000
4. Determine Income from Operations for 2019.
a. $200,500
b. $243,500
c. $117,000
d. $151,750
e. $165,750
5. Determine the Total Assets as of 12/31/2019.
a. $719,000
b. $769,000
c. $679,000
d. $669,000
e. $696,500
6. Determine the Profit Margin for the year ended December 31, 2019.
a. 26%
b. 37%
c. 54%
d. 382%