The Following Items Are Taken from the Financial Statements of Tracy

Essay

The following items are taken from the financial statements of Tracy Company for 2014: $$\begin{array} { l r } \text { Accounts payable } & 10,000 \\\text { Accounts receivable } & 11,000 \\\text { Accumulated depreciation-equipment } & 38,000 \\\text { Advertising expense } & 21,000 \\\text { Cash } & 14,000 \\\text { Common stock } & 90,000 \\\text { Depreciation expense } & 12,000 \\\text { Dividends } & 15,000 \\\text { Equipment } & 210,000 \\\text { Insurance expense } & 3,000 \\\text { Notespayable (due 2017) } & 70,000 \\\text { Prepaid insurance } & 6,000 \\\text { Rent expense } & 17,000 \\\text { Retained earnings (beginning) } & 12,000 \\\text { Salaries and wages expense } & 34,000 \\\text { Salaries and wages payable } & 3,000 \\\text { Service revenue } & 130,000 \\\text { Supplies } & 4,000 \\\text { Supplies expense } & 6,000\end{array}$$ Instructions
(a) Calculate the net income.
(b) Calculate the retained earnings balance that would appear on a balance sheet at December 31, 2014
(c) Prepare a classified balance sheet for Tracy Company at December 31, 2014 assuming the note payable is a long-term liability.
(d) Compute the current ratio, debt to assets ratio, and earnings per share value. The average number of shares outstanding for 2014 was 10,000.