is the adjusted trial balance for Dulcinea Corporation at December 31, 2017. Dul
ID: 2342363 • Letter: I
Question
is the adjusted trial balance for Dulcinea Corporation at December 31, 2017. Dulcinea CorporationTrial BalanceDecember 31, 2017DebitCreditCash$26,300 Accounts receivable19,000 Inventory23,000Office supplies700 Prepaid insurance2,400 Land75,000 Building, net153,000 Trademark7,000 Accounts payable46,875 Wages payable12,000 Interest payable 1,250Note payable (due in 4 years) 100,500 Capital stock45,000 Retained earnings66,000 Dividends 4,000 Sales Revenue233,000 Cost of goods sold93,200Selling expenses37,000 Administrative expenses42,400 Interest expense5,025 Income tax expense16,600 $504,625$504,625 Required (15 points):a. Prepare the financial statements for Dulcinea Corporation, including a multiple step income statement, Statement of Stockholders’ Equity and a classified balance sheet. Do not prepare the Statement of Cash Flows. b. Calculate the Current Ratio for Dulcinea Corporation.
Explanation / Answer
b)
Current ratio=Current Assets/Current Liabilites
=71400/60125
=1.19
Dulcinea Corporation Multiple Step Income Statement 31st December 2017 Revenues Net Sales $ 233,000.00 Cost of Goods Sold $ 93,200.00 Gross Profit $ 139,800.00 Operating Expense: Selling Expense $ 37,000.00 Administrative expenses $ 42,400.00 Total Operating Expense: $ 79,400.00 Income from Operations $ 60,400.00 Other Revenue and Expense Interest Expense $ 5,025.00 Income before taxes $ 55,375.00 Income tax expense $ 16,600.00 Net Income $ 38,775.00Related Questions
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