2.12 - Earnings from operations $318,000 2.12 D Earnings...

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2.12 A Merchandise inventory: $420,000 Accounts receivable: $96,000 Cash: $72,000 Total current assets: $588,000 Current liabilities: $(46,000) Difference: $542,000 2.12 B Current assets $588,000 Land $64,000 Equipment $36,000 Accumulated depreciation $(12,000) Total Assets $676,000 2.12 C Sales revenue $1,240,000 Cost of goods sold $(880,000) Gross profit $360,000 Rent expense $(36,000) depreciation expense $(6,000)
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Unformatted text preview: Earnings from operations $318,000 2.12 D Earnings from operartions $318,000 Interest expense $(18,000) Earning pre-taxes $300,000 Tax expense $(120,000) Net income $180,000 2.12 E Tax expense $120,000 Earnings pre-tax $300,000 Average tax rate 0.4 = 40% 2.12 F Account balance increase $398,000 +Net income - Dividends = Retained earnings 398000 +180000-128000=450000 s...
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2.12 - Earnings from operations $318,000 2.12 D Earnings...

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