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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 Interest expense Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Net sales $ 218,000 72,000 152,000 590,000 370,000 54,000 448,000 36,000 138,000 120,000 24,000 70,000 84,000 270,000 240,000 84,000 180,000 890,000 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.

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 Interest expense Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Net sales $ 218,000 72,000 152,000 590,000 370,000 54,000 448,000 36,000 138,000 120,000 24,000 70,000 84,000 270,000 240,000 84,000 180,000 890,000 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Interest expense Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Net sales a. 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. b. 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? C. d. e. f. $ 218,000 72,000 152,000 590,000 370,000 54,000 448,000 36,000 138,000 120,000 24,000 70,000 84,000 Total current assets Total liabilities and Stockholders' equity Operating income 270,000 240,000 Average income tax rate Retained earnings 84,000 180,000 890,000 %
Transcribed Image Text: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 Interest expense Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Net sales a. 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. b. 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? C. d. e. f. $ 218,000 72,000 152,000 590,000 370,000 54,000 448,000 36,000 138,000 120,000 24,000 70,000 84,000 Total current assets Total liabilities and Stockholders' equity Operating income 270,000 240,000 Average income tax rate Retained earnings 84,000 180,000 890,000 %
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