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Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314 Exercise 17
Understanding and analyzing financial statement relationships-merchandising organization Gary's TV had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended.
Required:
a. Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2016.
b. Calculate the total assets at December 31, 2016.
c. Calculate the earnings from operations (operating income) for the year ended December 31, 2016.
d. Calculate the net income (or loss) for the year ended December 31, 2016.
e. What was the average income tax rate for Gary's TV for 2016?
f. If $64,000 of dividends had been declared and paid during the year, what was the January 1, 2016, balance of retained earnings?
Required:
a. Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2016.
b. Calculate the total assets at December 31, 2016.
c. Calculate the earnings from operations (operating income) for the year ended December 31, 2016.
d. Calculate the net income (or loss) for the year ended December 31, 2016.
e. What was the average income tax rate for Gary's TV for 2016?
f. If $64,000 of dividends had been declared and paid during the year, what was the January 1, 2016, balance of retained earnings?
Explanation
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(a) Determine the total current assets l...
Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
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