Share
Explore BrainMass

Pickard and Associates

Please provide answers to the following:

The following selected information is taken from the records of Pickard and Associates:

Accounts payable = $143,000
Accounts receivable = 95,000
Advertising expense = 14,500
Cash = 63,000
Supplies expense = 31,500
Rent expense = 12,000
Utilities expense = 2,500
Income taxes (30% of income before taxes = ?
Miscellaneous expense = 5,100
Owners' equity = 215,000
Salaries expense = 78,000
Fees (revenues) = 476,000

1. Prepare an income statement for the year ended December 31, 2009. (Assume that 11,000 shares of stock are outstanding.)

2. Explain what the EPS ratio tells the reader about Pickard and Associates.

Solution Preview

The following selected information is taken from the records of Pickard and Associates:

Accounts payable = $143,000
Accounts receivable = 95,000
Advertising expense = 14,500
Cash = 63,000
Supplies expense = 31,500
Rent expense = 12,000
Utilities expense = 2,500 ...

Solution Summary

This solution is comprised of a detailed explanation to prepare an income statement for the year ended December 31, 2009 and explain what the EPS ratio tells the reader about Pickard and Associates.

$2.19