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Financial Accounting

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Income Statement: Profitability Ratios

FINACT-J5KZ4X

Green Grass Corporation provides the following information at year-end before an adjustment for Income Tax Expense has been made:

Account Titles Adjusted Trial Balance
Debits Credits
Cash \$26,055
Accounts Receivable 65,000
Inventory 55,810
Accounts Payable \$13,525
Salaries Payable 8,500
Common Stock 30,000
Retained Earnings 40,980
Sales Revenue 270,000
Investment Revenue 3,000
Salaries Expense 40,000
Purchases 105,440
Rent Expense 26,000
Utilities Expense 6,050
Depreciation Expense 16,650
Interest Expense 25,000
Totals \$366,005 \$366,005


In addition, Green Grass Corporation uses the periodic system to record Inventory and the beginning balance in the Inventory account is \$58,370 this year.