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The following items are taken from the financial statements of Ashe Company for 2012

Author:
June 8th, 2024

(TCOs B and D) The following items are taken from the financial statements of Ashe Company for 2012:Equipment$100,000Accounts Receivable12,000Accounts Payable9,000Cost of Goods Sold72,000Utilities Expense11,000Depreciation Expense17,000Insurance Expense9,000Common Stock200,000Dividends12,000Rent Expense3,000Note Payable (due 2014)40,000Advertising Expense14,000Prepaid Insurance17,000Retained Earnings (beginning)44,000Accumulated Depreciation50,000Salaries Expense60,000Salaries Payable3,500Net sales205,000Supplies4,000Supplies Expense5,000Instructions(a) Calculate the net income. (18 points)(b) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2012. (7 points)(c) Calculate the gross profit percentage. (5 points) (Points : 30)

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