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.