Pope’s Garage had the following accounts and amounts in its financial statements on December 31, 2013....


Accounts receivable	$	31,600
Depreciation expense		11,900
Land		25,900
Cost of goods sold		86,500
Retained earnings		63,700
Cash		10,000
Equipment		70,500
Supplies		5,700
Accounts payable		22,600
Service revenue		29,400
Interest expense		3,200
Common stock		6,000
Income tax expense		22,425
Accumulated depreciation		41,000
Long-term debt		37,000
Supplies expense		13,100
Merchandise inventory		26,600
Sales revenue		175,000

a.	Calculate the total current assets at December 31, 2013.

b.	Calculate the total liabilities and stockholders’ equity at December 31, 2013.

c.	Calculate the earnings from operations (operating income) for the year ended December 31, 2013.

d.	Calculate the net income (or loss) for the year ended December 31, 2013.
e.	What was the average income tax rate for Pope’s Garage for 2013?
f.	If $18,500 of dividends had been declared and paid during the year, what was the January 1, 2013, balance of retained earnings?

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ekkarill92 answered 4 months ago

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