The adjusted trial balance for Anara Co. as of December 31, 2018, follows. Anara Company is required

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The adjusted trial balance for Anara Co. as of December 31, 2018, follows. Anara Company is required to make an $8,400 payment on its long-term notes payable during 2019.

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Required

1. Prepare the income statement and the statement of retained earnings for calendar-year 2018 and the classified balance sheet at December 31, 2018.

2. Prepare the necessary closing entries at December 31, 2018.

3. Use the information in the financial statements to calculate these ratios: (a) return on assets (total assets at December 31, 2017, were $160,000); (b) debt ratio; (c) profit margin ratio (use total revenues as the denominator); and (d) current ratio. Round ratios to three decimals for parts a and c, and to two decimals for parts b and d.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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