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VERY important to have accuracy for these..thanks Ryan\'s Cars had the following

ID: 2375433 • Letter: V

Question

VERY important to have accuracy for these..thanks


Ryan's Cars had the following accounts and amounts in its financial statements on December 31, 2010. Assume that all balance sheet items reflect account balances at December 31, 2010, and that all income statement items reflect activities that occurred during the year then ended.

  Interest expense $ 34,000     Paid-in capital 87,000     Accumulated depreciation 32,000     Notes payable (long-term) 289,000     Rent expense 71,000     Merchandise inventory 834,000     Accounts receivable 186,000     Depreciation expense 12,000     Land 123,000     Retained earnings 426,480     Cash 139,000     Cost of goods sold 1,759,000     Equipment 65,000     Income tax expense 231,480     Accounts payable 101,000     Sales revenue 2,519,000  

Explanation / Answer

Required: (a) Calculate the difference between current assets and current liabilities for Ryan's Cars at December 31, 2010. (Omit the "$" sign in your response.) Difference $               1,058,000.00 (b) Calculate the total assets at December 31, 2010. (Omit the "$" sign in your response.)    Total assets $               1,347,000.00 (c) Calculate the earnings from operations (operating income) for the year ended December 31, 2010. (Omit the "$" sign in your response.)    Operating income $               677,000.00 (d) Calculate the net income (or loss) for the year ended December 31, 2010. (Omit the "$" sign in your response.) Select one (Net income/Net loss)      $               411,520.00 (e) What was the average income tax rate for Ryan's Cars for 2010? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)    Average income tax rate % 36% (f) If $404,520 of dividends had been declared and paid during the year, what was the January 1, 2010, balance of retained earnings? (Omit the "$" sign in your response.)    Retained earnings $                 419,480.00