Understanding and analyzing financial statement relationshipsmerchandising organization. Garys TV had the following accounts and amounts in its
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Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,000
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . 12,000
Notes payable (long-term) . . . . . . . . . . . . . . . . . . . . 140,000
Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
Merchandise inventory . . . . . . . . . . . . . . . . . . . . . . . 420,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . 96,000
Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,000
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . 880,000
Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,000
Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,240,000
Required:
a. Calculate the difference between current assets and current liabilities for Gary’s TV at December 31, 2013.
b. Calculate the total assets at December 31, 2013.
c. Calculate the earnings from operations (operating income) for the year ended December 31, 2013.
d. Calculate the net income (or loss) for the year ended December 31, 2013.
e. What was the average income tax rate for Gary’s TV for 2013?
f. If $128,000 of dividends had been declared and paid during the year, what was the January 1, 2013, balance of retained earnings?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
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