Partial listing of accountsDr. (Cr.)Common shares$ (2,000,000)Cost of goods sold3,778,000Depreciation expense77,000Dividends declared160,000Employee wages and benefits959,000Loss from discontinued operations before tax105,000Marketing and advertising expenses640,000Retained earnings, January 1, 2020(447,000)Sales(4,658,000)Utilities expense312,000During the year, the company issued shares for proceeds of $430,000. In addition,the company had a change in depreciation policy that required a retroactiveadjustment which increased the prior year's depreciation expense by $63,000.Star pays income tax at the rate of 20%. Assume that all of the above items exceptfor retained earnings are before tax.| The following is a partial listing of the accounts for Star Company for the year ended December 31, 2020, in alphabetical order.E (Click the icon to view the partial listing of accounts.)a(Click the icon to view the facts.)RequiredRequirement a. Prepare, in good form, a multi-step income statement that includes relevant subtotals, with operating expenses listed by their function, for the year ended December 31, 2020. (Use parentheses or a minus sign for numbers to be subtracted.)Star CompanyIncome StatementFor the year ended December 31, 2020Sales4.658.000Gross profitIncome before income taxesIncome tax expenseIncome from continuing operationsLoss from discontinued operationsNet incomeChoose from any list or enter any number in the input fields and then click Check Answer.

Income statement is a financial statements that shows details of incomes and expenses of the…

Requirement a. Prepare, in good form, a multi-step income statement that includes relevant subtotals, with operating expenses listed by their function, for the year ended December 31, 2020. (Use parentheses or a minus sign for numbers to be subtracted.) Star Company Income Statement For the year ended December 31, 2020 Sales %24 4,658,000 Gross profit Income before income taxes Income tax expense Income from continuing operations Loss from discontinued operations Net income

Requirement a. Prepare, in good form, a multi-step income statement that includes relevant subtotals, with operating expenses listed by their function, for the year ended December 31, 2020. (Use parentheses or a minus sign for numbers to be subtracted.) Star Company Income Statement For the year ended December 31, 2020 Sales %24 4,658,000 Gross profit Income before income taxes Income tax expense Income from continuing operations Loss from discontinued operations Net income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ali Co., a publicly traded company, has prepared its income statement for the year ending December 31, 2020. The income statement includes the results of operation for a geographic segment that was discontinued on December 30, 2020. Ali Co. Statement of Income For the year ended December 31, 2020 Sales 9,800,000 COGS 4,500,000 5,300,000 Gross Profit Selling, general and administrative (S,G&A) expenses 3,300,000 Income before tax 2,000,000 Income tax expense 500,000 Net income 1,500,000 Additional information The company's discontinued geographic segment reported the following for 2020: sales of $1,200,000, COGS of $850,000, and S,G&A expenses of $380,000. Geographic Segment's assets: Carrying value 4,500,000 Fair value 4,700,000 Costs to sell 400,000 Required: Prepare a revised income statement for the year ending December 31, 2020 in proper format based on the information provided above.
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Solve this income statement by vertical analysis :
Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $157,080 Interest expense 27,720 Average total assets 2,800,000 Determine the return on total assets? If required, round the answer to one decimal place.
Lancer Company's preliminary income statement for 2021 and its reported income statement for 2020 are given below. 2021 2020 1,350,000 (648,0001 702,000 (172,500) (162.000 367.500 Sales Revenues 1,320,000 (630.000 690,000 Cost of Goods Sold Gross Profit Depreciation Other Expenses (172,500) (153.000 364.500 Net Income Lancer's records reveal the following information: (1) Lancer neglected to record S8,000 of supplies expense at the end of 2020, so the supplies inventory was overstated at the end of 2020. Consequently, the supplies expense computed for 2021 included the additional amount of supplies used in 2020. (2) On 1/1/19, Lancer purchased a machine for $120,000. Although the machine was expected to have an eight-year life, it was erroneously expensed in recording the purchase. The appropriate depreciation method for this machine is double-declining-balance with no residual. (3) At the end of 2021, Lancer decided to change its inventory costing method from the FIFO costing method…
Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 2019 Sales $ 510,880 $ 391,376 $ 271,600 Cost of goods sold 307,550 248,524 173,824 Gross profit 203,330 142,852 97,776 Selling expenses 72,545 54,010 35,851 Administrative expenses 45,979 34,441 22,543 Total expenses 118,524 88,451 58,394 Income before taxes 84,806 54,401 39,382 Income tax expense 15,774 11,152 7,995 Net income $ 69,032 $ 43,249 $ 31,387 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 2019 Assets Current assets $ 53,905 $ 36,079 $ 48,229 Long-term investments 0 500 3,040 Plant assets, net 101,665 92,652 55,799 Total assets $ 155,570 $ 129,231 $ 107,068 Liabilities and Equity Current liabilities $ 22,713 $ 19,255 $ 18,737 Common stock 68,000 68,000 50,000 Other paid-in capital 8,500 8,500 5,556 Retained earnings 56,357 33,476…
Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 5,000,000 3.350,000 1,650,000 675,000 975,000 200,000 1,175,000 411,250 763.750 2019 4,900,000 3,300,000 1,600,000 650,000 950,000 Sales Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division 950,000 332,500 617.500 Net income before income tax Income tax expense (35%) Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The book value of the segment's assets was P1,550,000. The segment's contribution to Chalangs' operating income before tax for each year was as follows: 2020 113,750 loss 81,250 income 2019 Assume that by…
he following information is related to the Doll Pty Ltd. Description 2018 2020 Total revenues (Sales) $2,580 $5,880 Total assets: Beginning of year 1,200 2,290 End of year 1120 2,381 The ratio of sales to assets for 2018 and 2020 will be: Select one: a. 2.22 And 2.52 b. 2.30 And 2.47 c. 1.11 And 1.26 d. 2.15 And 2.56
View Policies Current Attempt in Progress For its fiscal year ending October 31, 2025, Cullumber Corporation reports the following partial data. Income before income taxes Income tax expense (20% × $390,600) Income from continuing operations Loss on discontinued operations Net income $502,200 78,120 424,080 111,600 $312,480 The loss on discontinued operations was comprised of a $46,500 loss from operations and a $65,100 loss from disposal. The income tax rate is 20% on all items. (a) Prepare a correct partial income statement, beginning with income before income taxes. CULLUMBER CORPORATION Income Statement (Partial)
using the report given,provide and comment on the following: You meed to analyse the items under the consolidated statement of profit or loss both years 2019 and 2020. Provide an analysis using this part.
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