Internet Marketing Inc. (IMI), which has been operating for three years, provides marketing consulting services worldwide for online companies. You are a financial analyst assigned to report on the effectiveness of IMIs management team at managing its assets. At the start of 2023 (its fourth year), IMIs T-account balances were as follows. Amounts are in thousands of dollars.

Assets:

Cash
3,200

Accounts Receivable
8,000

Long-Term Investments
6,400

Liabilities:

Accounts Payable
	2,400

Deferred Revenue
	5,600

Long-Term Debt
	1,600

Shareholders Equity:

Contributed Capital
	4,800

Retained Earnings
	3,200

Revenue:

Consulting Fee Revenue

Investment Income

Expense:

Wages Expense

Travel Expense

Utilities Expense

Rent Expense

Required: 1. Using the data from these T-accounts, complete the accounting equation on January 1, 2023.

2. Enter the following 2023 transactions in the T-accounts (Enter zero for entries with no beginning balance):

1. Provided $58,000 in services to clients; received $48,000 in cash and the rest on account.
2. Received $5,600 cash from clients on account.
3. Received $400 in cash as income on investments.
4. Paid $36,000 for wages, $12,000 for travel, $7,600 in rent, and $1,600 on accounts payable.
5. Received $1,600 in cash from clients in advance of services that IMI will provide next year.
6. Received a utility bill for $800 for services used in 2023.
7. Paid $480 in dividends to shareholders.

3. Compute ending balances in the T-accounts to determine the missing amounts on December 31, 2023:

4. What is the net earning balance?

5. What is the new accounting equation?

6. Calculate the total asset turnover ratio for 2023. (Enter your answers in numbers and not in percentages. Round the final answer to 2 decimal places.)