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Question: The following items are taken from the financial statements of Grove Company for 2012: Accounts P...

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

Accounts Payable $18,500

Accounts Receivable 4,000

Accumulated Depreciation 4,800

Bonds Payable 18,000

Cash 24,000

Common Stock 25,000

Cost of Goods Sold 17,000

Depreciation Expense 4,800

Dividends 5,300

Equipment 44,000

Interest Expense 2,500

Patents 7,500

Retained Earnings, January 1 16,000

Salaries Expense 5,200

Sales Revenue 36,500

Supplies 4,500

Instructions

(a) Prepare an Income Statement, Statement of Retained Earnings and a Classified Balance Sheet for Grove Company.

(b) Compute the following ratios and values:

1. Current ratio

2. Debt to total assets ratio

3. Working capital

4. Earnings per share (Groves average number of shares outstanding during the year was 5,000.)