The following items are taken from the financial statements of Ashe Company for 2012:
Equipment $100,000
Accounts Receivable 12,000
Accounts Payable 9,000
Cost of Goods Sold 72,000
Utilities Expense 11,000
Depreciation Expense 17,000
Insurance Expense 9,000
Common Stock 200,000
Dividends 12,000
Rent Expense 3,000
Note Payable (due 2014) 40,000
Advertising Expense 14,000
Prepaid Insurance 17,000
Retained Earnings (beginning) 44,000
Accumulated Depreciation 50,000
Salaries Expense 60,000
Salaries Payable 3,500
Net Sales 205,000
Supplies 4,000
Supplies Expense 5,000
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.