Analyzing Financial Statements
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Understanding and analyzing financial statement relationships-merchandising organization Garyâ??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.
Assume all figures are from the Balance Sheet and Income statement ending 12/31/10
Interest expense- 36,000
Paid-in Capital- 80,000
accumulated depreciation- 24,000
Notes Payable (long term)- 280,000
rent expense- 72,000
merchandise inventory 840,000
accounts receivable 192,000
depreciation expense 12,000
land 128,000
retained earnings 900,000
cash 144,000
cost of goods sold 1,760,000
equipment 72,000
income tax expense 240,000
accounts payable 92,000
sales revenue 2,480,000
a) Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2010
b) Calculate the total assets at December 31, 2010
c) Calculate the earnings from operations (operating income) for the year ended December 31, 2010.
d) Calculate the net income (income or loss) for the year ended December 31, 2010.
e) What was the average income tax rate for Gary's TV for 2010.
f) If $250,000 of dividends had been declared and paid furing the year, what was the January 1, 2010, of retained earnings?
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The solution provides answers various questions related to income statement & balance sheet for Gary's TV.
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