Gary's TV had the following accounts and amounts in its financial statements on December 31, 2022....

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Gary's TV 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. Interest expense Paid-in capital Accumulated depreciation Notes payable (long-term) Rent expense $ 6,500 26,000 7,000 75,000 15,000 Merchandise inventory 146,000 Accounts receivable 58,000 Depreciation expense 3,500 Land 59,000 Retained earnings 174,500 Cash 22,500 Cost of goods sold 260,000 Equipment 50,000 Income tax expense 90,000 53,000 510,000 Accounts payable Net sales Required: a. Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2022. b. Calculate the total assets at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022. e. What was the average income tax rate for Gary's TV for 2022? f. If $22,000 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings? Gary's TV 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. Interest expense Paid-in capital Accumulated depreciation Notes payable (long-term) Rent expense $ 6,500 26,000 7,000 75,000 15,000 Merchandise inventory 146,000 Accounts receivable 58,000 Depreciation expense 3,500 Land 59,000 Retained earnings 174,500 Cash 22,500 Cost of goods sold 260,000 Equipment 50,000 Income tax expense 90,000 53,000 510,000 Accounts payable Net sales Required: a. Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2022. b. Calculate the total assets at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022. e. What was the average income tax rate for Gary's TV for 2022? f. If $22,000 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings?

Answer rating: 100% (QA)

To calculate the requested values we need to use the given information from Garys TV financial state... View the full answer