Porter Corporation's capital structure consists of 50,000 shares of common stock. AtDecember 31, 2010 an analysis of the accounts and discussions with company officialsrevealed the following information:SalesPurchase discountsPurchasesEarthquake loss (net of tax) (extraordinary item)Selling expensesCashAccounts receivableCommon stockAccumulated depreciationDividend revenueInventory, January 1, 2010Inventory, December 31, 2010Unearned service revenueAccrued interest payableLandPatentsRetained earnings, January 1, 2010Interest expenseGeneral and administrative expensesDividends declaredAllowance for doubtful accountsNotes payable (maturity 7/1/13)Machinery and equipmentMaterials and suppliesAccounts payableRequired:$1,100,00018,000642,000The amount of income taxes applicable to ordinary income was $48,600, excluding the taxeffect of the earthquake loss which amounted to $18,000.(a) Prepare a multiple-step income statement.(b) Prepare a retained earnings statement.42,000128,00060,00090,000200,000180,0008,000152,000125,0004,4001,000370,000100,000290,00017,000150,00029,0005,000200,000450,00040,00060,000

1. Income Statement - Income Statement includes revenue earned and expense incurred during the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The following Income Statement information has been obtained from the books of Unlimited Liquors Corporation for the year ended March 31, 2022. The Income tax rate is 40% and the company has 50,000 shares of common stock outstanding. Sales Revenue $890,000 Cost of Goods sold 300,000 Operating expenses 220,000 Income from discontinued operations 140,000 Loss on disposal of discontinued operations 60,000 Determine the income or loss from discontinued operations as reported on the Income Statement: Determine the net income or loss from the discontinued segment of the company as reported on the Income Statement: What is the EPS of the company?
The following transactions occurred last year at Jost Company: Issuance of shares of the company's own common stock $170,00o; Dividends paid to the company's own shareholders $7,000; Dividends received from investments in other companies' shares $4,000; Interest paid on the company's own bonds $11,000; Repayment of principal on the company's own bonds $40,000; Proceeds from sale of the company's used equipment $23,000; Purchase of land $120,00. Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows would be: $112,000 $123,000 $375,000 $19,000
Information from the Balance Sheet and Statement of Income are given below for Bramble Inc., a private company reporting under ASPE, for the year ended December 31. Comparative Balance Sheet Cash Accounts receivable Inventory Investments in land Property, plant, and equipment Accumulated depreciation Accounts payable Accrued expenses payable Bonds payable Common shares Retained earnings Retained earnings Revenues Sales Expenses 2021 $78,110 Profit 90,940 123,440 86.540 286,640 (50,060) $615,610 Gain on disposal of equipment Additional Informati $54,140 13,140 140,000 250,000 158,330 Cost of goods sold Depreciation expense Operating expenses Income tax expense Interest expense 2020 $47,350 37,350 103,750 108,350 202,200 (40,200) $458,800 $49,850 19,250 76,000 207,000 106,700 158,330 $615,610 $ 96,250 57,300 15,470 38,000 2,950 106,700 $458,800 $292,500 8,350 300,850 209,970 $ 90,880
20
The most recent financial statements for Martin, Inc., are shown here: Income Statement $18,000 -10,800 $7,200 -1,512 Sales Costs Taxable income Taxes (21%) Net income $5,688 Balance Sheet $40,000 33,800 Assets $73,800 Debt Equity Total $73,800 Total $73,800 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $985 was paid, and Martin wishes to maintain a constant payout ratio. Next year's sales are projected to be $22,320. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Presented below are selected ledger accounts of Tamarisk Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% Your answer is correct. Compute net income for 2020. Net income tA $ 96800 $55,000 110,000 88,000 594,000 231,000 22,000 16,500 44,000 33,000 99,000
The following transactions occurred last year at Jost Company: Issuance of shares of the company’s own common stock $170,000 ; Dividends paid to the company’s own shareholders $7,000; Dividends received from investments in other companies’ shares $4,000; Interest paid on the company’s own bonds $11,000; Repayment of principal on the company’s own bonds $40,000; Proceeds from sale of the company’s used equipment $23,000; Purchase of land $120,000 . Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows would be: a.$112,000 b. $123,000 c. $375,000 d. $19,000
17. Following data were taken from the records of Bassam Company for year 2020: Sales Revenues:$1,000,000; Rent revenues $6,000; Cost of Goods Sold $560,000, Selling expenses $70,000; Administrative and General Expenses $90,000; Interest expenses 20,000; Preference Shares Dividends declared and paid $60,000; Ordinary Shares Dividends declared and paid $80,000; tax rate 25%; No. of common shares outstanding 200,000 shares. Calculate Earnings per share (round answer to the nearest cent)?
Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) Total sales Cost of sales Gross profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating income Other income Earnings before interest and taxes (EBIT) Interest income (expense) Pretax income Taxes Net income Price per share Shares outstanding (millions) Stock options outstanding (millions) Stockholders' Equity Total Liabilities and Stockholders' Equity 2012 610.1 (500.2) 109.9 (40.5) (24.6) (3.6) 41.2 --- $16 10.2 126.6 2011 578.3 (481.9) 96.4 41.2 31.3 (25.1) (15.8) # 16.1 (5.5) 15.5 (5.3) 10.2 10.6 533.1 (39.0) (22.8) (3.3) 31.3 $15 8.0 0.2 502 63.6 386.7 Calculate Luther's price - earnings ratio (P/E) for the year ending December 31, 2012
Arizona Corp. had the following account balances at 12/1/19: Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000. Several of Arizona's accounts have fair values that differ from book value. The fair values are: Land — $480,000; Building — $720,000; Inventory — $336,000; and Liabilities — $396,000. Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000. Imagine you are the decision maker at Inglewood Inc. Prepare a fair value allocation and goodwill schedule at the date of the acquisition. Determine in 525- words whether you would encourage acquiring Arizona Corp? Be sure to include your rationa
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