Alisha\'s Dolls had the following accounts and amounts in its financial statemen
ID: 2484884 • Letter: A
Question
Alisha's Dolls had the following accounts and amounts in its financial statements on December 31, 2013. Assume that all balance sheet items reflect account balances at December 31, 2013, and that all income statement items reflect activities that occurred during the year then ended.
Interest expense $29,000
paid-in capital $86,000
accumulated depreciation $34,000
notes payable (long-term) 288,000
rent expense 72,000
merchandise inventory 836,000
accountant receviable 188,000
depreciation expense 11,000
land 126,000
retained earnings 441,050
cash 142,000
cost of goods sold 1,756,000
equipment 63,000
income tax expense 218,050
accounts payable 101,000
sales revenue 2,491,000
Required: a. Calculate the difference between current assets and current liabilities for Alisha's Dolls 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 Alisha's Dolls for 2013?
F. If $398,950 of dividends had been declared and paid during the year, what was the January 1, 2013, balance of retained earnings?
Explanation / Answer
We summarise as below
Long Term Assets
Land 126000
A) we are given current assets = 1166000
current Liabilities = 101000
Difference = 1065000
b) Total Assets = 1321000
c) Earning from operationn = 623000
d) Net Income = 404950
Income Statement Sales Revenue 2491000 Less: Cost of Goods Sold 1756000 Gross Income 735000 Less: Operating epenses Interest Expense 29000 Rent Expense 72000 Depreciation expense 11000 112000 Operating Income 623000 Less: Income Tax expense 218050 Net Income 404950Related Questions
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