Calculate the balance of retained earnings

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Reference no: EM131786281

The following items are taken from the financial statements of Butler Company for 2012:

Accounts Receivable

$20,000

Cost of Goods Sold

95,000

Utilities Expense

3,500

Accounts Payable

7,000

Common Stock

100,000

Rent Expense

5,500

Advertising Expense

9,000

Dividends

10,000

Insurance Expense

2,000

Note Payable (due 2014)

50,000

Depreciation Expense

10,000

Prepaid Insurance

18,000

Accumulated Depreciation

30,000

Retained Earnings (beginning)

33,000

Salaries Expense

40,000

Salaries Payable

4,500

Net sales

170,000

Supplies

3,000

Supplies Expense

2,500

Instructions

(a) Calculate the net income.

(b) Calculate the balance of Retained Earnings that would appear on a Balance Sheet at December 31, 2012.

(c) Calculate the gross profit percentage.

Reference no: EM131786281

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