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Pope's Garage had the following accounts and amounts in its financial statements on December: 2022. Assume that all balance sheet items reflect account balances
Pope's Garage had the following accounts and amounts in its financial statements on December: 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and t 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 $ 218,000 72,000 152,000 590,000 370,000 54,000 448,000 36,000 138,000 120,000 Interest expense 24,000 Common stock 70,000 Income tax expense 84,000 Accumulated depreciation 270,000 Long-term debt 240,000 Supplies expense 84,000 Merchandise inventory 180,000 Net sales 890,000 Required: 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 $96,000 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 liabilities and Stockholders' equity Onnection Innam
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