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Gary's TV had the following accounts and amounts in its financial statements on December 31, 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year then ended. Interest expense Accumulated depreciation $ 4,600 10,800 3,200 Paid-in capital Notes payable (long-term) 37,000 Rent expense 9,300 Merchandise inventory: 108,000 Accounts receivable 29,500 Depreciation expense. 1,600 Land 21,000 Retained earnings 136,500 32,000 222,000 12,000 33,000 15,000 320,000 Cash Cost of goods sold Equipment Income tax expense Accounts payable Net sales Required: a. Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2022. b. Calculate the total assets at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022 e. What was the average income tax rate for Gary's TV for 2022? f. If $31,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings? a. Difference b. Total assets c Operating income d. e. Average income tax rate f. Retained earnings

Gary's TV had the following accounts and amounts in its financial statements on December 31, 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year then ended. Interest expense Accumulated depreciation $ 4,600 10,800 3,200 Paid-in capital Notes payable (long-term) 37,000 Rent expense 9,300 Merchandise inventory: 108,000 Accounts receivable 29,500 Depreciation expense. 1,600 Land 21,000 Retained earnings 136,500 32,000 222,000 12,000 33,000 15,000 320,000 Cash Cost of goods sold Equipment Income tax expense Accounts payable Net sales Required: a. Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2022. b. Calculate the total assets at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022 e. What was the average income tax rate for Gary's TV for 2022? f. If $31,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings? a. Difference b. Total assets c Operating income d. e. Average income tax rate f. Retained earnings

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gary's TV had the following accounts and amounts in its financial statements on December 31, 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year then ended. Interest expense Accumulated depreciation $ 4,600 10,800 3,200 Paid-in capital Notes payable (long-term) 37,000 Rent expense 9,300 Merchandise inventory: 108,000 Accounts receivable 29,500 Depreciation expense. 1,600 Land 21,000 Retained earnings 136,500 32,000 222,000 12,000 33,000 15,000 320,000 Cash Cost of goods sold Equipment Income tax expense Accounts payable Net sales Required: a. Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2022. b. Calculate the total assets at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022 e. What was the average income tax rate for Gary's TV for 2022? f. If $31,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings? a. Difference b. Total assets c Operating income d. e. Average income tax rate f. Retained earnings
Transcribed Image Text:Gary's TV had the following accounts and amounts in its financial statements on December 31, 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year then ended. Interest expense Accumulated depreciation $ 4,600 10,800 3,200 Paid-in capital Notes payable (long-term) 37,000 Rent expense 9,300 Merchandise inventory: 108,000 Accounts receivable 29,500 Depreciation expense. 1,600 Land 21,000 Retained earnings 136,500 32,000 222,000 12,000 33,000 15,000 320,000 Cash Cost of goods sold Equipment Income tax expense Accounts payable Net sales Required: a. Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2022. b. Calculate the total assets at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022 e. What was the average income tax rate for Gary's TV for 2022? f. If $31,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings? a. Difference b. Total assets c Operating income d. e. Average income tax rate f. Retained earnings
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