Analyzing financial statements - Gary TV
Not what you're looking for?
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............................. 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
Required:
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 (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 $256,000 of dividends had been declared and paid during the year, what was the January 1, 2010, balance of retained earnings?
Purchase this Solution
Solution Summary
The solution calculates Calculate the difference between current assets and current liabilities,the total assets,the earnings from operations (operating income), the net income (or loss), the average income tax rate and If $256,000 of dividends had been declared and paid during the year, what was the January 1, 2010, balance of retained earnings for Gary's TV
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Motivation
This tests some key elements of major motivation theories.