Popes Garage had the following accounts and amounts in its financial statements on December 31, 2019. Assume that all balance sheet items reflect account balances at December 31, 2019, and that all income statement items reflect activities that occurred during the year then ended.

Accounts receivable	$	32,400
Depreciation expense		11,800
Land		26,300
Cost of goods sold		89,000
Retained earnings		61,300
Cash		9,400
Equipment		69,000
Supplies		5,700
Accounts payable		22,200
Service revenue		24,300
Interest expense		3,800
Common stock		9,000
Income tax expense		19,860
Accumulated depreciation		43,000
Long-term debt		37,000
Supplies expense		12,500
Merchandise inventory		29,700
Net sales		159,000

Required:

1. Calculate the total current assets at December 31, 2019.
2. Calculate the total liabilities and stockholders equity at December 31, 2019.
3. Calculate the earnings from operations (operating income) for the year ended December 31, 2019.
4. Calculate the net income (or loss) for the year ended December 31, 2019.
5. What was the average income tax rate for Popes Garage for 2019?
6. If $18,500 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 f. Retained earnings