Pope\'s Garage had the following accounts and amounts in its financial statement
ID: 2492346 • Letter: P
Question
Pope's Garage had the following accounts and amounts in its financial statements on December 31.2013 Assume that at balance sheet Hems reflect account balances at December 31. 2013. and that all income statement items reflect activities that occurred during the year then ended Calculate the total current assets at December 31. 2013 Calculate the total liabilities and stockholders' equity at December 31.2013 Calculate the earnings from operations (operating income) for the year ended December 31.2013 Calculate the net income (or loss) for the year ended December 31. 2013 What was the average income tax rate for Pope's Garage tor 2013? if $16,000 of dividends had been declared and paid during the year, what was the January 1 2013 balance of retained earnings?Explanation / Answer
Total current assests at December 31, 2010.=75,700
Accounts receivable……………...$30,600
Cash……………………………..11,300
Supplies……………………...5,000
Merchandise inventory………...28,800
b. Total liabilities and owners’ equity at December 31, 2010=1,27,700
Retained earnings………………….58,500
Accounts Payable……………...21,200
Common stock………………..10,000
Long-term debt…………….38,000
Earnings from operations (operating income) for the year ended December 31, 2010. =82,200
Sales revenue……..174,000
Service revenue…………20,600
Less:
Cost of goods sold………………89,500
Depreciation expense………..10,300
Supplies expense…………..12,600
d.Calculate the net income ( or loss) for the year ended December 31, 2010
Operating Income
Less:
Interest expense……………..1,400
Income tax expense…………..21,008
e.What was the average income tax rate for Pope’s Garage for 2010?
21,008 / Income before income taxes
f.If $16,000 of dividends had been declared and paid during the year, what was the January 1, 2010, balance of retained earnings?
58,500 - 16,000