Interest expense Paid-in capital Accumulated depreciation Notes payable (long-term) Rent expense Merchandise inventory Accounts receivable Depreciation expense Land Retained earnings Cash Cost of goods sold Equipment Income tax expense Accounts payable Net sales $ 5,400 17,200 4,800 53,000 11,700 124,000 41,500 2,400 37,000 152,500 28,000 238,000 28,000 57,000 31,000 400,000 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 $27,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings?

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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Interest expense
Paid-in capital
Accumulated depreciation
Notes payable (long-term)
Rent expense
Merchandise inventory
Accounts receivable
Depreciation expense
Land
Retained earnings
Cash
Cost of goods sold
Equipment
Income tax expense
Accounts payable
Net sales
$ 5,400
17,200
4,800
53,000
11,700
124,000
41,500
2,400
37,000
152,500
28,000
238,000
28,000
57,000
31,000
400,000
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 $27,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings?
Transcribed Image Text:Interest expense Paid-in capital Accumulated depreciation Notes payable (long-term) Rent expense Merchandise inventory Accounts receivable Depreciation expense Land Retained earnings Cash Cost of goods sold Equipment Income tax expense Accounts payable Net sales $ 5,400 17,200 4,800 53,000 11,700 124,000 41,500 2,400 37,000 152,500 28,000 238,000 28,000 57,000 31,000 400,000 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 $27,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings?
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