Reference no: EM132838062

Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2019. Assume that all balance sheet items reflect account balances at December 31, 2019, and that all income statement items reflect activities that occurred during the year then ended.

Accounts receivable$32,500
Depreciation expense 10,600
Land 24,800
Cost of goods sold 86,000
Retained earnings 68,600
Cash 10,700
Equipment 70,500
Supplies 5,600
Accounts payable 20,500
Service revenue 29,000
Interest expense 2,600
Common stock 5,000
Income tax expense 24,948
Accumulated depreciation 42,000
Long-term debt 38,000
Supplies expense 13,700
Merchandise inventory 30,000
Net sales 173,000

Problem 1: Calculate the total current assets at December 31, 2019.

Problem 2: Calculate the total liabilities and stockholders' equity at December 31, 2019.

Problem 3: Calculate the earnings from operations (operating income) for the year ended December 31, 2019.

Problem 4: Calculate the net income (or loss) for the year ended December 31, 2019.

Problem 5: What was the average income tax rate for Pope's Garage for 2019?

Problem 6: If $17,000 of dividends had been declared and paid during the year, what was the January 1, 2019, balance of retained earnings?