Presented below is a combined single-step income and retained earnings statement for Hardrock Mining Co. for 20X1. Statement of Income and Retained Earnings for the Year Ended December 31, 20X1 ($ in 000) Net sales $5,281,954 Costs and expenses Cost of products sold Marketing, administrative, and other expenses Interest expense 4,765,505 193,147 17,143 54,529 5,030,324 Other, net Total expenses before taxes Earnings before income taxes Provision for income taxes 251,630 (52,842) 198,788 3,046,660 (100,000) $3,145,448 Net income Retained earnings at 1/1/20X1 Dividends on common stock Retained earnings at 12/31/20X1 Additional facts gleaned from notes to Hardrock's financial statements follow (dollar amounts in thousands): a. Other, net for 20X1 included a corporate restructuring charge of $8 The remainder of the category is composed of investment losses. b. Marketing, administrative, and other expenses for 20X1 included a loss on currency translation of $55. C. All of these transactions were subject to Hardrock's income tax rate of 21%. d. Hardrock disclosed earnings per share data only in the notes to the financial statements. The company had 10,000,000 shares of common stock outstanding throughout 20X1. and a pre-tax profit of $12,000 on discontinued operations.
Presented below is a combined single-step income and retained earnings statement for Hardrock Mining Co. for 20X1. Statement of Income and Retained Earnings for the Year Ended December 31, 20X1 ($ in 000) Net sales $5,281,954 Costs and expenses Cost of products sold Marketing, administrative, and other expenses Interest expense 4,765,505 193,147 17,143 54,529 5,030,324 Other, net Total expenses before taxes Earnings before income taxes Provision for income taxes 251,630 (52,842) 198,788 3,046,660 (100,000) $3,145,448 Net income Retained earnings at 1/1/20X1 Dividends on common stock Retained earnings at 12/31/20X1 Additional facts gleaned from notes to Hardrock's financial statements follow (dollar amounts in thousands): a. Other, net for 20X1 included a corporate restructuring charge of $8 The remainder of the category is composed of investment losses. b. Marketing, administrative, and other expenses for 20X1 included a loss on currency translation of $55. C. All of these transactions were subject to Hardrock's income tax rate of 21%. d. Hardrock disclosed earnings per share data only in the notes to the financial statements. The company had 10,000,000 shares of common stock outstanding throughout 20X1. and a pre-tax profit of $12,000 on discontinued operations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Presented below is a combined single-step income and retained earnings statement for Hardrock Mining Co. for 20X1.
Statement of Income and Retained Earnings for the Year Ended December 31, 20X1
($ in 000)
Net sales
$5,281,954
Costs and expenses
Cost of products sold
Marketing, administrative, and other expenses
Interest expense
4,765,505
193,147
17,143
54,529
Other, net
Total expenses before taxes
Earnings before income taxes
5,030,324
251,630
(52,842)
198,788
3,046,660
(100,000)
Provision for income taxes
Net income
Retained earnings at 1/1/20X1
Dividends on common stock
Retained earnings at 12/31/20X1
$3,145,448
Additional facts gleaned from notes to Hardrock's financial statements follow (dollar amounts in thousands):
a. Other, net for 20X1 included a corporate restructuring charge of $8,777 and a pre-tax profit of $12,000 on discontinued operations.
The remainder of the category is composed of investment losses.
b. Marketing, administrative, and other expenses for 20X1 included a loss on currency translation of $55.
C. All of these transactions were subject to Hardrock's income tax rate of 21%.
d. Hardrock disclosed earnings per share data only in the notes to the financial statements. The company had 10,000,000 shares of
common stock outstanding throughout 20X1.
Transcribed Image Text:$ in thousands
Net sales
$ 5,281,954
Cost of products sold
4,765,505
Gross profit
516,449
Marketing, administrative, and other expenses
(193,147)
Interest expense
(17,143)
Investment losses
Investment losses
(57,752)
(8,777)
Earnings before income taxes
239,630
(71,889) X
167,741 X
Provision for income taxes
Income from continuing operations
Retained earnings
3,046,660 8
Earnings per common share:
16.77 X
0.84 X
17.61 X
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