Gary’s TV had the following accounts and amounts in its financial statements on December 31, 2019. A

Gary’s TV 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. Interest expense $ 4,500 Paid-in capital 10,000 Accumulated depreciation 3,000 Notes payable (long-term) 35,000 Rent expense 9,000 Merchandise inventory 106,000 Accounts receivable 28,000 Depreciation expense 1,500 Land 19,000 Retained earnings 122,000 Cash 20,000 Cost of goods sold 220,000 Equipment 10,000 Income tax expense 30,000 Accounts payable 13,000 Net sales 310,000

Required: Calculate the difference between current assets and current liabilities for Gary’s TV at December 31, 2019. Calculate the total assets at December 31, 2019. Calculate the earnings from operations (operating income) for the year ended December 31, 2019. Calculate the net income (or loss) for the year ended December 31, 2019. What was the average income tax rate for Gary’s TV for 2019? If $32,000 of dividends had been declared and paid during the year, what was the January 1, 2019, balance of retained earnings?

Difference b. Total assets c. Operating income 401% e. Average income tax rate f. Retained earnings