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

Pope’s Garage had the following accounts and amounts in its financial statements on December 31, 2013. Assume that all balance sheet items reflect account balances at December 31, 2013, and that all income statement items reflect activities that occurred during the year then ended.

  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 10 months ago
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