Answer:
Kingbird, Inc.
Income Statement
For the year ended July 31, 2017
Revenues:
- Service revenue $67,800
- Rent revenue $9,800 $77,600
Expenses:
- Salaries and wages expense $59,200
- Supplies expense $16,900
- Depreciation expense $5,400 <u> ($81,500)</u>
Net loss ($3,900)
Kingbird, Inc.
Balance Sheet
For the year ended July 31, 2017
Assets
Current assets
- Cash $30,900
- Accounts receivable $10,980 $41,880
Non-current assets
- Equipment (net) $12,800 $12,800
Total assets: $54,680
Liabilities
Current liabilities
- Salaries and wages payable $3,780
- Accounts payable $4,100 $7,880
Long term liabilities
- Notes payable (due in 2020) $3,000 $3,000
Stockholders' equity
- Common stock $16,000
- Retained earnings $27,800 $43,800
Total liabilities and shareholders' equity $54,680
Kingbird, Inc.
Retained Earnings Statement
For the year ended July 31, 2017
Retained earnings August 1, 2016 $35,700
Net loss <u> ($3,900)</u>
$31,800
Dividends <u>($4,000)</u>
Retained earnings July 31, 2017 $27,800
current ratio = current assets / current liabilities = $41,880 / $7,880 = 5.3
debt to assets ratio = total liabilities / total assets = $10,880 / $54,680 = 19.9%
