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The Following Items Are Taken from the Financial Statements of the Postal

question 41

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The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015:  Accounts payable $18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy)  6,000\begin{array} { l r } \text { Accounts payable } & \$ 18,000 \\\text { Accounts receivable } & 11,000 \\\text { Accumulated depreciation - equipment } & 28,000 \\\text { Advertising expense } & 21,000 \\\text { Cash } & 15,000 \\\text { Common stock } & 42,000 \\\text { Dividends } & 14,000 \\\text { Depreciation expense } & 12,000 \\\text { Insurance expense } & 3,000 \\\text { Note payable, due 6/30/16 } & 70,000 \\\text { Prepaid insurance (12-month policy) } & 6,000\end{array}  Rent expense 17,000 Retained earnings (1/1/15)  60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000\begin{array} { l r } \text { Rent expense } & 17,000 \\\text { Retained earnings (1/1/15) } & 60,000 \\\text { Salaries and wages expense } & 32,000 \\\text { Service revenue } & 133,000 \\\text { Supplies } & 4,000 \\\text { Supplies expense } & 6,000 \\\text { Equipment } & 210,000\end{array} What is the company's net income for the year ending December 31, 2015?

Understand various financial ratios and their roles in measuring company performance and solvency.
Calculate and assess the times interest earned ratio to analyze a company's ability to meet its interest obligations.
Analyze a company's liquidity through current ratio calculation and understand its significance.
Comprehend the computation and significance of return on total assets, asset turnover, and return on common stockholders' equity.

Definitions:

Boxplot

A graphical representation used in statistics to show the distribution of numerical data and highlight the mean, median, quartiles, and outliers.

Influential Points

Data points that have a disproportionately large effect on the results of a statistical analysis, potentially skewing the analysis.

Scatterplot

A graphical representation where individual data points are plotted on a two-dimensional plane, showcasing the relationship between two variables.

Precipitation

Any form of water - liquid or solid - falling from the sky, including rain, snow, sleet, and hail.

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