Reference no: EM13504784
Below is the Trial Balance for Clay Employment Services, year ending December 31, 2011. Previous period's information were as follows: net receivables, $290,000 and inventory, $82,000. Total revenues were $350,000 for 2010, 360,000 for 2009, and 295,000 for 2008.
Requirements:
1) Prepare the income statement, statement of retained earnings, and balance sheet.
2) Calculate the following ratios: current ratio, quick ratio, debt ratio, accounts receivable turnover, and inventory turnover. Briefly explain your answers.
3) Calculate the vertical analysis for total current assets.
4) Calculate the horizontal analysis on total revenues from 2008 thru 2011.
Cash 198,000
Accounts receivable 300,000
Inventories 78,000
Prepaid insurance expense 4,000
Supplies 2,000
Furnitures 100,000
Accumulated depreciation, furnitures 60,000
Building 250,000
Accumulated depreciation, building 140,000
Accounts payable 310,000
Salaries payable 5,000
Unearned service revenue 13,000
Notes payable ($12,000 due in the current year) 40,000
Mortgage payable (1/3 is due in the current year) 30,000
Retained earnings 293,000
Dividends 65000
Service revenue 300,000
Professional fees revenue 30,000
Salary expense 170,000
Supplies expense 4,000
Depreciation expense, furnitures 20,000
Depreciation expense, building 11,000
Rent expense 9,000
Interest expense 7,000
Utilities expense 3,000
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: Below is the Trial Balance for Clay Employment Services, year ending December 31, 2011. Previous period's information were as follows: net receivables, $290,000 and inventory, $82,000. Total revenues were $350,000 for 2010, 360,000 for 2009, ..
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