Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2-196 Saved ces Problem 2-19 (Algo) Understanding and analyzing financial statement relationships-sales/service organization LO 2-2, 2-3, 2-4 Pope's Garage had the following accounts and amounts
2-196 Saved ces Problem 2-19 (Algo) Understanding and analyzing financial statement relationships-sales/service organization LO 2-2, 2-3, 2-4 Pope's Garage 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. Accounts receivable Depreciation expense Land Cost of goods sold Retained earnings Cash Equipment Supplies Accounts payable. Service revenue $31,000 10,000 25,000 86,000 60,100 11,100. 69,000 5,000 20,500 28,800 Interest expense 1,100 Common stock 9,000 Income tax expense 17,108 Accumulated depreciation 42,000 Long-term debt 38,000 Supplies expense 13,900 Merchandise inventory 27,700 Net sales 140,000 Def eBook Ask Print References Net sales Required: 148,000 a. Calculate the total current assets at December 31, 2022. b. Calculate the total liabilities and stockholders' equity 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 Pope's Garage for 2022? f. If $19,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings? a. Total current assets b. Total abilities and Stockholders' equity c. Operating Income d. eAverage income tax rate Retained eamings a. Total current assets b. Total liabilities and Stockholders' equity Operating income P f. Net income Net loss %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started