Share
Explore BrainMass

Calculate missing amounts for financial statements

See attachment for proper format.

The information presented here represents selected data from the December 31, 2010, balance sheets and income statements for the year then ended for three firms.

Calculate the missing amounts for each firm.

Firm A Firm B Firm C
Total assets, 12/31/10 $401,000 $531,000 $334,000
Total liabilities, 12/31/10 222,000 143,000 ___________
Paid-in capital, 12/31/10 85,000 70,000 42,000
Retained earnings, 12/31/10 94,000 319,000 ___________
Net income for 2010 _________ 91,000 116,000
Dividends declared and
paid during 2010 50,000 12,000 62,000
Retained earnings, 1/1/10 79,000 _________ 35,000
________________________________________

Calculate the missing amounts for each firm.

Firm A Firm B Firm C
Total assets, 12/31/10 ________ $261,000 $312,000
Total liabilities, 12/31/10 48,000 114,000 123,000
Paid-in capital, 12/31/10 33,000 35,400 84,000
Retained earnings, 12/31/10 ________ 111,600 105,000
Net income for 2010 40,800 66,000 48,600
Dividends declared and
paid during 2010 7,200 ________ 16,800
Retained earnings, 1/1/10 30,000 74,400 _________
________________________________________

Gary's TV had the following accounts and amounts in its financial statements on December 31, 2010. Assume that all balance sheet items reflect account balances at December 31, 2010, and that all income statement items reflect activities that occurred during the year then ended.

____________________
Interest expense $ 9,000
Paid-in capital 80,000
Accumulated depreciation 6,000
Notes payable (long-term) 280,000
Rent expense 16,000
Merchandise inventory 164,000
Accounts receivable 48,000
Depreciation expense 3,000
Land 35,000
Retained earnings 225,000
Cash 36,000
Cost of goods sold 394,000
Equipment 18,000
Income tax expense 60,000
Accounts payable 26,000
Sales revenue 620,000
__________________________________________________

(b) Calculate the total assets at December 31, 2010.

Total assets $ __________

(c) Calculate the earnings from operations (operating income) for the year ended December 31, 2010.

Operating income $ __________

(d) Calculate the net income (or loss) for the year ended December 31, 2010.

Net lossNet income $ ___________

(e) What was the average income tax rate for Gary's TV for 2010? (Round your answer to 2 decimal places.)

Average income tax rate ________ %

(f) If $129,000 of dividends had been declared and paid during the year, what was the January 1, 2010, balance of retained earnings?

Retained earnings $ ________

Attachments

Solution Summary

This solution illustrates how to calculate missing amounts for financial statements.

$2.19