Reference no: EM132456541
Problem - The following items are taken from the financial statements of Lacey Company for 2012:
Advertising Expense $14,000
Accounts Receivable 12,000
Cost of Goods Sold 65,000
Accumulated Depreciation-Equipment 20,000
Accounts Payable 21,000
Cash 44,000
Depreciation Expense 17,000
Common Stock 100,000
Dividends 25,000
Insurance Expense 5,000
Note Payable (due 2014) 70,000
Rent Expense 4,000
Prepaid Insurance 17,000
Retained Earnings (beginning) 22,000
Salaries Expense 50,000
Salaries Payable 3,500
Net sales 175,000
Supplies 4,000
Supplies Expense 3,000
Equipment 210,000
Required -
(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.