Dairy Services was organized on August 1, 2016. A summary of the revenue and expense transactions for August follows:
Fees earned $781,000
Wages expense 560,000
Rent expense 34,000
Supplies expense 8,000
Miscellaneous expense
10,900
Prepare an income statement for the month ended August 31. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign.
Financial information related to Ebony Interiors for February and March 2016 is as follows:
Cash $326,000 $377,000
Accounts receivable 820,000 954,000
Supplies 31,000 35,000
Accounts payable 327,000 389,000
Common stock 200,000 200,000
Retained earnings
Required:
1. Prepare balance sheets for Ebony Interiors as of February 29 and March 31, 2016. Refer to the lists of Accounts, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.
2. Determine the amount of net income for March, assuming that no additional common stock was issued and no dividends were paid during the month.
3. Determine the amount of net income for March, assuming that no additional common stock was issued, but dividends of $42,000 were paid during the month.
Builder's Outlet reported the following balance sheet data (in millions):
Year 2 Year 1
Total assets $83,239 $119,756
Total stockholders' equity 33,700 36,400
a. Determine the total liabilities at the end of Years 2 and 1.
b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Round your answers to two decimal places.