Table 2-2
the Following Is a List of the Accounts

question 26

Essay

Table 2-2
The following is a list of the accounts and their balances appearing in the ledger of Martin Mann Garage as of December 31, 2019, the company's year end. The accounts are in alphabetical order and have normal balances. $\begin{array} { l r } \text { Accounts payable } & 1,350 \\\text { Accounts receivable } & 3,750 \\\text { Cash } & 1,200 \\\text { Equipment } & 37,800 \\\text { Gasoline expense } & 1,800 \\\text { Martin Mann, Capital } & 19,800 \\\text { Martin Mann, Withdrawals } & 1,500 \\\text { Notes payable } & 33,000 \\\text { Rent expense } & 3,600 \\\text { Repairs expense } & 1,950 \\\text { Salary expense } & 2,100 \\\text { Salary payable } & 300 \\\text { Service revenue } & 24,750 \\\text { Supplies } & 600 \\\text { Supplies expense } & 900 \\\text { Truck } & 24,000\end{array}$
-Refer to Table 2-2. Prepare an Income statement for Martin Mann Garage for the year ended December 31, 2019.

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Definitions:

Constant Ratio

A strategy or measure that remains unchanged over a period of time, often used in financial contexts to describe stable investment proportions or fixed financial ratios.

Retained Earnings

Represents the portion of net income that is not distributed to shareholders but retained by the company for reinvestment in its operations or to pay debt.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders as dividends, typically expressed as a percentage.

Profit Margin

A financial metric that measures the extent to which a company or a business activity makes money, expressed as a percentage of revenues.