The Following Items Are Taken from the Financial Statements of Grove

question 221

Essay

The following items are taken from the financial statements of Grove Company for 2014: $$\begin{array} { l r } \text { Accounts payable } & \$ 18,500 \\\text { Accounts receivable } & 8,000 \\\text { Accumulated depreciation-equipment } & 4,800 \\\text { Bonds payable } & 18,000 \\\text { Cash } & 24,000 \\\text { Common stock } & 25,000 \\\text { Cost of goods sold } & 27,000 \\\text { Depreciation expense } & 4,800 \\\text { Dividends } & 5,300 \\\text { Equipment } & 44,000 \\\text { Interest expense } & 2,500 \\\text { Patents } & 7,500 \\\text { Retained earnings, January 1 } & 16,000 \\\text { Salaries and wages expense } & 5,200 \\\text { Sales revenue } & 50,500 \\\text { Supplies } & 4,500\end{array}$$ Instructions
(a) Prepare an income statement and a classified balance sheet for Grove Company.
(b) Compute the following ratios and values:
1. Current ratio
2. Debt to assets ratio
3. Working capital
4. Earnings per share (Grove's average number of shares outstanding during the year was 5,000.)

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Definitions:

Recombinant DNA

Composite DNA made in a laboratory by joining DNA fragments from multiple sources.

Restriction Enzymes

Enzymes that cut DNA at specific sequences, widely used in molecular biology for cloning and DNA manipulation.

Ligases

Enzymes that catalyze the joining of two molecules by forming a new chemical bond, often requiring the expenditure of energy derived from ATP.

Polymerase

An enzyme that synthesizes long chains or polymers of nucleic acids.