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(a) Please create a classified balance sheet in good form for the year
ended 2012. (25 points)
(b) Please calculate the current ratio. (5 points)
Question 12. Question : (TCOs B and E) The adjusted trial balance of
Gertz Company included the following selected accounts.
Debit Credit
Sales $575,000
Sales returns and allowances $ 50,000
Sales discounts 9,500
Cost of goods sold 347,000
Instructions:
1: Use the above information to prepare a multiple-step income
statement for the year ended December 31, 2010.
2: Calculate the profit margin ratio and gross profit rate. To qualify for
full credit, you must state the formula you are using, show your
computations, and explain your findings.
Question 11. Question : (TCO D) A classmate is considering dropping
his or her accounting class because he or she cannot understand the rules
of debits and credits.
Explain the rules of debits and credits in a way that will help him or her
understand them. Cite examples for each of the major sections of the
balance sheet (assets, liabilities and stockholders' equity) and the income
statement (revenues and expenses).