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Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances
Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, 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 Interest expense Common stock Income expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Sales revenue $ 30,100 11,800 26,200 ,000 60,500 11,100 70,000 5,600 21,000 29,100 2.900 9,000 22,680 44,000 38,000 13,400 29,500 168,000 Required: a. Calculate the total current assets at December 31, 2016. Total current assets b. Calculate the total liabilities and stockholders' equity at December 31, 2016. Total liabilities and stockholders' equity c. Calculate the earnings from operations (operating income) for the year ended December 31, 2016. Operating income d. Calculate the net income (or loss) for the year ended December 31, 2016. Net income e. What was the average income tax rate for Pope's Garage for 2016? Average income tax rate % f. If $18,500 of dividends had been declared and paid during the year, what was the January 1, 2016, balance of retained earnings? Retained earnings
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