S. Myra invested $7,500 cash in the business during year 2009 (the December 31, 2008, credit balance of the S. Myra, Capital account was $125,1000). Myra Company is required to make a $6,000 payment on its long-term notes payable during 2010.
REQUIRED
1) Prepare the income statement of owner's equity for the calendar year 2009 and the classified balnace sheet at December 31, 2009.
2) Prepare the necessary closing entries at December 31, 2009.
3) Use the information in the financial statements to calculate these ratios: (a) Return on assests (total assests at December 31, 2008, were $200,00), (b) Debt ratio, (c) Profit margin ratio (use total revenues as the denominator), and (d) Current ratio.