Understanding and analyzing financial statement relationships-merchandising organization Gary's TV had the following accounts and amounts in its financial statements on December 31, 2009. Assume that all balance sheet items reflect account balances at December 31, 2009, and that all income statement items reflect activities that occurred during the year then ended.

Required:

a. Calculate the difference between current assets and current liabilities for Gary’s TV at December 31, 2009.

b. Calculate the total assets at December 31, 2009.

c. Calculate the earnings from operations (operating income) for the year ended December 31, 2009.

d. Calculate the net income (or loss) for the year ended December 31, 2009.

e. What was the average income tax rate for Gary’s TV for 2009?

f. If $256,000 of dividends had been declared and paid during the year, what was the January 1, 2009, balance of retained earnings?

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Interest expense Paid-in capital..... Accumulated depreciation. Notes payable (long-term). Rent expense Merchandise inventory. $ 36,000 80,000 24,000 280,000 72,000 840,000 Accounts receivable ... 192,000 Depreciation expense 12,000 Land.... 128,000 Retained earnings. 900,000 Cash..... 144,000 Cost of goods sold 1,760,000 Equipment..... Income tax expense Accounts payable..... Sales revenue.. 72,000 240,000 92,000 2,480,000