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Pope’s Garage had the following accounts and amounts in its financial statements on December 31, 2013....

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Accounting

Pope’s Garage had the following accounts and amounts in itsfinancial statements on December 31, 2013. Assume that all balancesheet items reflect account balances at December 31, 2013, and thatall income statement items reflect activities that occurred duringthe year then ended.

  Accounts receivable$31,600
  Depreciation expense11,900
  Land25,900
  Costof goods sold86,500
  Retained earnings63,700
  Cash10,000
  Equipment70,500
  Supplies5,700
  Accounts payable22,600
  Service revenue29,400
  Interest expense3,200
  Common stock6,000
  Income tax expense22,425
  Accumulated depreciation41,000
  Long-term debt37,000
  Supplies expense13,100
  Merchandise inventory26,600
  Sales revenue175,000
a.Calculate thetotal current assets at December 31, 2013.
b.Calculate thetotal liabilities and stockholders’ equity at December 31,2013.
c.Calculate theearnings from operations (operating income) for the year endedDecember 31, 2013.
d.Calculate thenet income (or loss) for the year ended December 31, 2013.
e.What was theaverage income tax rate for Pope’s Garage for 2013?
f.

If $18,500 of dividends had been declared and paid during theyear, what was the January 1, 2013, balance of retainedearnings?

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