The adjusted trial balance for Tybalt Construction as of December 31, 2016, follows. The December 31, 2015, credit balance of the Retained Earnings account was $121,400. Tybalt Construction is required to make a $7,000 payment on its long-term notes payable during 2017.
Required Prepare the income statement and the statement of retained earnings for the calendar year 2016 and the classified balance sheet at December 31, 2016. Check (1) Total assets (12/31/2016), $218,100; Net income, $4,300 Prepare the necessary closing entries at December 31, 2016. Use the information in the financial statements to compute these ratios: (a) return on assets (total assets at December 31, 2015, was $200,000), (b) debt ratio, (c) profit margin ratio (use total revenues as the denominator), and (d) current ratio. Round ratios to three decimals for parts a and c, and to two decimals for parts b and d.
