An analysis of the transactions made by crane company, a certified public accounting firm, for the month of august, its first month of operations is shown below. each change in revenues or expenses is explained. assets = liabilities + stockholders’ equity cash + accounts receivable + supplies + equipment accounts payable common stock retained earnings = + + revenues – expenses – dividend 1. $14,750 $14,750 2. –2,700 $4,700 $2,000 3. –800 $800 4. 6,100 $3,100 $9,200 service revenue 5. –1,600 –1,600 6. –1,900 -$1,900 7. –650 –$650 rent expense 8. 500 –500 9. –4,000 –4,000 salaries/wages expense 10. 400 –400 utilities expense prepare an income statement for august.

If the ceo of a large, diversified, firm were filling out a fitness report on a division manager (i.e., "grading" the manager), which of the following situations would be likely to cause the manager to receive a better grade? in all cases, assume that other things are held constant.a. the division's basic earning power ratio is above the average of other firms in its industry.b. the division's total assets turnover ratio is below the average for other firms in its industry.c. the division's debt ratio is above the average for other firms in the industry.d. the division's inventory turnover is 6, whereas the average for its competitors is 8.e. the division's dso (days' sales outstanding) is 40, whereas the average for its competitors is 30.