. Wintz’ biggest expense was salaries, but even then this was only one-third of the net income. Other expenses, such as rent, supplies, and repair expenses, only cost a small portion of the total expenses. …
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depr. (100) Retained earnings 2,500 200 Total stockholders’ equity 2,900 Total assets $3,200 Total liabilities and stockholders’ equity $3,200 3) Yes, Kathy Wintz’ summer work was mostly successful. She was able to make lots of sales and her expenses were only a little over half her revenue, which means that she made quite a substantial net profit. Wintz’ biggest expense was salaries, but even then this was only one-third of the net income. Other expenses, such as rent, supplies, and repair expenses, only cost a small portion of the total expenses. For the Retained Earnings Statement, Wintz was able to make back more than double her initial investment. For a business that was only open for four months, this is very impressive. Wintz also paid out some dividends to shareholders, but there was still enough retained earnings left at the end of August that Wintz could return to college feeling satisfied with her summer’s work. For the balance sheets, the assets column looks very healthy. Added to this is the fact that there are very few liabilities, which means that the business does not have any worries.
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