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) $5,281,954 Net sales Costs and expenses. Cost of products sold Marketing, administrative, and other expenses Interest expense Other, net mokes Total expenses before taxes www Earnings before income taxes Provision for income taxes Net income Retained earnings at 1/1/20x1 Dividends on common stock Retained earnings at 12/31/20X1 4,765,505 193,147 17,143 54,529 5,030,324 251,630 (52,842) 198,788 3,046,660 (100,000) $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. Required: Recast this single-step combined income statement and retained earnings statement as a multiple-step income statement. Include appropriate per share amounts. (Round your answers to 2 decimal places under "Earnings per common share:". For others, enter you answers in thousands rounded to the nearest whole dollar)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Net sales
Cost of products sold
Gross profit
Hardrock Mining Co.
Income Statement
For the Year ended December 31, 20X1
$ in thousands
Marketing, administrative, and other expenses
Interest expense
Investment losses
Restructuring charges
Earnings before income taxes
Provision for income taxes
Income from continuing operations
Profit on discontinued operations, net of income tax effect
Net income
Earnings per common share:
Income from continuing operations
Profit on discontinued operations, net of income tax effect
Net income
Earnings per common share:
Income from continuing operations
Net income
$5,281,954
(4,765,505)
516,449
(193,147)
(17,143)
(57,752)
(8,777)
239,630
Transcribed Image Text:Net sales Cost of products sold Gross profit Hardrock Mining Co. Income Statement For the Year ended December 31, 20X1 $ in thousands Marketing, administrative, and other expenses Interest expense Investment losses Restructuring charges Earnings before income taxes Provision for income taxes Income from continuing operations Profit on discontinued operations, net of income tax effect Net income Earnings per common share: Income from continuing operations Profit on discontinued operations, net of income tax effect Net income Earnings per common share: Income from continuing operations Net income $5,281,954 (4,765,505) 516,449 (193,147) (17,143) (57,752) (8,777) 239,630
Presented below is a combined single-step income and retained earnings statement for Hardrock Mining Co. for 20X1.
Statement of Income and Retained Earnings for the Year Ended December 31, 20x1
($ in 000)
$5,281,954
Net sales
Costs and expenses
Cost of products sold
Marketing, administrative, and other expenses
Interest expense
A
Other, net
mak
Total expenses before taxes.
Earnings before income taxes
Provision for income taxes
Net income
Retained earnings at 1/1/20x1
Dividends on common stock
Retained earnings at 12/31/20X1
4,765,505
193,147
17,143
54,529
5,030,324
251,630
(52,842)
198,788
3,046,660
(100,000)
$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 $55.
c. All of these transactions were subject to Hardrock's income tax rate of 21%.
d. Hardrock disclosed earnings per share data only in the notes to the financial statements. The company had 10,000,000 shares of
common stock outstanding throughout 20X1.
Required:
Recast this single-step combined income statement and retained earnings statement as a multiple-step income statement. Include
appropriate per share amounts. (Round your answers to 2 decimal places under "Earnings per common share:". For others, enter
you answers in thousands rounded to the nearest whole dollar.)
Transcribed Image Text:Presented below is a combined single-step income and retained earnings statement for Hardrock Mining Co. for 20X1. Statement of Income and Retained Earnings for the Year Ended December 31, 20x1 ($ in 000) $5,281,954 Net sales Costs and expenses Cost of products sold Marketing, administrative, and other expenses Interest expense A Other, net mak Total expenses before taxes. Earnings before income taxes Provision for income taxes Net income Retained earnings at 1/1/20x1 Dividends on common stock Retained earnings at 12/31/20X1 4,765,505 193,147 17,143 54,529 5,030,324 251,630 (52,842) 198,788 3,046,660 (100,000) $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. Required: Recast this single-step combined income statement and retained earnings statement as a multiple-step income statement. Include appropriate per share amounts. (Round your answers to 2 decimal places under "Earnings per common share:". For others, enter you answers in thousands rounded to the nearest whole dollar.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education