Understanding and analyzing financial statement relationshipssales/service LO 2y 3, 4 organization Popes Garage had the following accounts
Question:
Understanding and analyzing financial statement relationships—sales/service LO 2y 3, 4 organization Pope’s Garage 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 total current assets at December 31, 2009.
b. Calculate the total liabilities and owners’ equity 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 Pope’s Garage for 2009?
f. If $16,000 of dividends had been declared and paid during the year, what was the January 1, 2009, balance of retained earnings?
Step by Step Answer:
Accounting What The Numbers Mean
ISBN: 9780073379418
8th Edition
Authors: David Marshall, Wayne McManus, Daniel Viele