2. Using the data below, show a simple Income Statement to compute the net income. Include the correct title on the income statement and follow the formatting guidelines shown in the example of an excel worksheet for assignments. Use formulas where necessary.
4. Explain what the net income represents.
6. If you did not use some of the items on the Income Statement, list what other financial statements would show each of them.

Revenues from Fees $1,025,000

Cash $45,000

Wages $150,000

Building $700,000

Notes Payable $255,000

Office Supplies $10,000

Utilities Expense $90,000

Interest Expense $35,000

Office Equipment $215,000

Administrative Expense $125,000

Insurance Expense $40,000

3. [] Provide the formula for each of the following ratios and then explain what each ratio measures.

2. Gross Margin Ratio
4. Return on Sales
6. Current Ratio
8. Return on Owners' Equity
   1. direct materials

4. [] Define the following terms as they relate to product costs and give an example of each:

2. direct labor
4. manufacturing overhead

5. [] Joe used data he gathered to run a regression analysis for his delivery firm's revenue. The results of this analysis are as follows:

Intercept 39.08959

X coefficient 19.4874

R square .971519

2. Determine the revenue equation using the linear regression output.
4. What is Joe's estimated revenue per month if he makes 35 deliveries?
6. What is Joe's estimated revenue per month if he makes 45 deliveries?
8. Evaluate the strength of the regression analysis.

6. [] Jackson Carpet Manufacturing, Inc. has the following balance sheet at the end of the year:

JCM owns $7,500 of material used on various client projects.

JCM owns office equipment totaling $80,550.

Clients owe $28,275 for completed projects.

JCM has a cash balance of $12,500.

JCM owes $35,000 to the bank.

JCM owes suppliers $19,450.

2. Calculate the firm's total assets.
4. Calculate the firm's total liabilities.
6. Calculate the firm's net assets.
8. Calculate the firm's debt to equity ratio.

7. [] Discuss the differences between for-profit firms and non-profit firms. For example, how do their goals differ and what are the differences in each type of business's source of fund capital?

8. [] Clearly explain the differences between financing a firm with equity from stock and financing a firm with debt from long-term debt instruments such as bonds.

9. [] Nail Care generated the following manicure revenue over the past 6 months. Use a regression to predict revenue:

a. if 275 customers receive a manicure in a month

b. if 350 customers receive a manicure in a month

Month	Cost	Number of Customers
July	$6,957	320
August	$4,450	200
September	$1,125	50
October	$2,850	125
November	$4,405	210
December	$6,250	300

Section II. []

Use the financial statements below to calculate each of the following ratios and briefly describe what the results of each indicate.

Financial Perspective:

• Current Ratio
• Return on Sales
• Debt to Equity Ratio
• Return on Investment
• Quick Ratio
• Return on Owners' Equity
• Gross Margin

Internal Perspective:

• Accounts Receivable Turnover
• Days in Collection
• Inventory Turnover
• Days in the Selling Cycle
• Accounts Payable Turnover
• Days in the Pay Cycle

Banner Corporation Balance Sheet December 31, 2008
Current Assets		Current Liabilities
Cash	$ 30,000	Accounts Payable	$ 130,000
Accounts Receivable	95,000	Wages Payable	225,000
Inventory	250,000	Total Current Liabilities	$ 355,000
Total Current Assets	$375,000
		Long-Term Liabilities
Property, Plant & Equipment		Long Term Notes Payable	$900,000
Land	$250,000	Total Liabilities	$1,255,000
Buildings	795,000
Equipment	85,000
Total Property Plant &		Owners' Equity	$ 250,000
Equipment	$1,130,000	Total Liabilities and
Total Assets	$1,505,000	Owners' Equity	$1,505,000
Total Assets 12/31/07	1,200,000	Accts Rec 12/31/07	$80,000
Total Owners' Equity 12/31/07	$300,000	Accts Pay 12/31/07	$85,000
Inventory 12/31/07	$200,000

Banner Corporation Income Statement For the year ended Dec 31, 2008
Sales	$5,300,000
Cost of Goods Sold	1,750,000
Gross Margin	$3,550,000
Operating Expenses	2,100,000
Operating Income	$ 1,450,000
Tax Expense	190,000
Net Income	$ 1,260,000

Answer rating: 100% (QA)

Income Statement For the year ended December 31 2021 Revenues SUMB2B11 1025000 Expenses Wages B3 150000 Building B4 700000 Notes Payable B5 255000 Office Supplies B6 10000 Utilities Expense B7 90000 I... View the full answer