Question

Please explain in depth so i can see how to get there

$ 31,700 Accounts receivable Depreciation expense Land 10,400 24,200 89,000 Cost of goods sold Retained earnings 64,400 11,900 70,500 5,300 22,700 Cash Equipment Supplies Accounts payable Service revenue 24,500 3,300 Interest expense 6,000 Conimon stock Income tax expense 12,225 Accumulated depreciation Long-term debt Supplies expense Merchandise inventory 42,000 37,000 12,900 28,500 140,000 Net sales Required: a. Calculate the total current assets at December 31, 2019. b. Calculate the total liabilities and stockholders' equity at December 31, 2019. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2019. d. Calculate the net income (or loss) for the year ended December 31, 2019. e. What was the average income tax rate for Pope's Garage for 2019? f. If $20,000 of dividends had been declared and paid during the year, what was the January 1, 2019, balance of retained earnings? a. Total current assets b. Total liabilities and stockholders' equity c. Operating income d. e. Average income tax rate Retained earnings f.

Answer 1

Part a
Current assets
Accounts receivable	31700
Cash	11900
Merchandise inventory	28500
supplies	5300
Total	77400
Part b
Total liabilities and stockholder's equity
Retained earnings	64400
Accounts payable	22700
Common stock	6000
Long term debt	37000
Total	130100
Part d
Earnings from operations
Net sales	140000
Service revenue	24500
Cost of goods sold	89000
	75500
Depreciation expense	10400
interest expense	3300
supplies expense	12900
Net income	48900
Income tax expense	12225
Income after taxes	36675
Part c
Net income	48900
Depreciation	10400
Operating income	59300
Part e
Income tax rate=	12225/48900
	0.25
	25%
Part F
retained earnings	64400
less dividend paid	20000
retained earnings	44400