(TCOs B and D) The following items are taken from the financial statements of Lacey Company for 2012:

Advertising Expense	$14,000
Accounts Receivable	12,000
Cost of Goods Sold	65,000
Accumulated Depreciation—Equipment	20,000
Accounts Payable	21,000
Cash	44,000
Depreciation Expense	17,000
Common Stock	100,000
Dividends	25,000
Insurance Expense	5,000
Note Payable (due 2014)	70,000
Rent Expense	4,000
Prepaid Insurance	17,000
Retained Earnings (beginning)	22,000
Salaries Expense	50,000
Salaries Payable	3,500
Net sales	175,000
Supplies	4,000
Supplies Expense	3,000
Equipment	210,000

Instructions

(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)

Answer rating: 100% (QA)

Answer Solution a Net income Net sales 175000 Cost of goods sold 65000 Gro... View the full answer