Reference no: EM131790100

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

Equipment $100,000

Accounts Receivable 12,000

Accounts Payable 9,000

Cost of Goods Sold 72,000

Utilities Expense 11,000

Depreciation Expense 17,000

Insurance Expense 9,000

Common Stock 200,000

Dividends 12,000

Rent Expense 3,000

Note Payable (due 2014) 40,000

Advertising Expense 14,000

Prepaid Insurance 17,000

Retained Earnings (beginning) 44,000

Accumulated Depreciation 50,000

Salaries Expense 60,000

Salaries Payable 3,500

Net Sales 205,000

Supplies 4,000

Supplies Expense 5,000

a) Calculate the net income.

b) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2012.

c) Calculate the gross profit percentage.