Sales (net) Interest expense Cost of goods sold $124,000 3,700 66,200 Operating expenses Common stock, $5 par Retained earnings, 1/1/2019 $30,400 22,000 45,800 The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.28 per share was declared and paid. 2. Land was sold at a pretax gain of $6,300. 3. Division X (a major component of the company) was sold at a pretax gain of $4,700. It had incurred a $9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders’ equity is $90,000.

Sales (net) Interest expense Cost of goods sold $124,000 3,700 66,200 Operating expenses Common stock, $5 par Retained earnings, 1/1/2019 $30,400 22,000 45,800 The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.28 per share was declared and paid. 2. Land was sold at a pretax gain of $6,300. 3. Division X (a major component of the company) was sold at a pretax gain of $4,700. It had incurred a $9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders’ equity is $90,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: For the year ended December 31, 2022, the job cost sheets of Carla Vista Company contained the…

Q: Calculate the net income earned during the year. Assume that the change to stockholders’ equity…

A: Total assets = Total liabilities + Total equity Beginning equity = Beginning assets - Beginning…

Q: Prepare an income statement for Sunland Company for the year ended April 30, 2022.

A: Financial statements together present the summary of financial information of the entity. The main…

Q: The adjusted trial balance for the year of Dreamer Corporation at July 31, 2021, follows. (Click the…

A: Certainly! Let's break down each financial statement and what they represent:Income Statement:This…

Q: a. Compute basic earnings per share for 2019. b. Compute diluted earnings per share for 2019. c.…

A: a. Calculate Basic earnings per share for 2019.

Q: Forecasting an Income Statement ADP reports the following income statement. AUTOMATIC DATA…

A: Income statement is part of financial statements. It includes revenue and expenses of a period.…

Q: Required: a) Prepare a statement of cash flows from operations for Neway Ltd. b) Prepare a statement…

A: Cash flow statement are prepared in order to ascertain the actual cash…

Q: For Year Ended December 31, 2021 ($ in thousands) Revenues: WRIGHT COMPANY Income Statement Sales…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: d. Calculate the net income (or loss) for the year ended December 31, 2022 e. What was the average…

A: Income statement shows company's income and expenses over a period of time.Revenues, Expenses, and…

Q: I. Gross profit margin II. Operating profit margin III. Return on equity IV. Current ratio V.…

A: Gross Profit Margin =(Revenue – Cost of Goods Sold) / Revenue x 100, Operating Profit Margin =…

Q: Prepare the Cash flow from operating activities section ONLY of the statement of cash flows for…

A: Particulars Calculation Amount( in Pounds) Profits for the year 17440 Add: Corporation Tax…

Q: Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020…

A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…

Q: Stone Culture Corporation was organized on January 1, 2020. For its first two years of operations,…

A: Retained earnings statement: Retained earnings is the amount retained by the company out of its net…

Q: Grand Rapids Consulting Inc. began 2019 with a retained earnings balance of $38,100 and hasthe…

A: Retained earnings seem to be the earnings that remain with the firm just after the disbursement of…

Q: he Kelly Services, Inc., and subsidiaries partial statement s of earnings from its annual report are…

A: Comparative balance sheet used to compare the financial statement of two or more periods. It is…

Q: Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency…

A: Current Ratio: the current ratio in the FY2019 is higher than FY2018 Interpretation: A higher…

Q: on December 31, 2019, retained earnings has a normal balance of $15,800. on December 31, 2020,…

A: The retained earnings are the earnings kept to be distributed to the shareholders of the…

Q: epare an income statement for the year ended December 31, 2018, which includes amounts gross profit,…

Q: The preliminary 2021 income statement of Alexian Systems, Inc., is presented below. ALEXIAN SYSTEMS,…

A: An income statement stands for the statement that shows profits and loss of the firm, its revenue…

Q: Please refer to the attachment and write similar content/words of the income statement, statement of…

A: Income Statement The purpose of preparing the income statement of the firm to know the net income…

Q: Earning's Compute the liquidity and profitability ratios of Blossom Company for 2021 and 2022.…

A: A vital instrument for analyzing financial statements is accounting ratios. To analyze a company's…

Q: The following information was available for the year ended December 31, 2019: Earnings before…

A: Debt equity ratio measures the percentage of debt concerning the equity of the company.

Q: Oxmoor Corporation prepared the following adjusted trial balance.…

A: Income statement forms a part of financial statements and is prepared with a view to ascertain the…

Q: The following is a partial trial balance for the Green Star Corporation as of December 31, 2021:…

A: Req-1: Single Step Income Statement GREEN STAR CORPORATION Income Statement For…

Q: The following selected information is for H55 Corporation: Total assets Total shareholders' equity…

A: Gross profit takes into consideration only direct expenses whereas net profit takes into…

Question

Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance:

1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retaiI1ed earnings statement. 3.Compute the 2019 return on common equity (Net Income 4 Average Shareholders’ Equity).

Sales (net)
Interest expense
Cost of goods sold
$124,000
3,700
66,200
Operating expenses
Common stock, $5 par
Retained earnings, 1/1/2019
$30,400
22,000
45,800
The following information is also available for 2019 and is not reflected in the preceding accounts:
1. The common stock has been outstanding all year. A cash dividend of $1.28 per share was declared and paid.
2. Land was sold at a pretax gain of $6,300.
3. Division X (a major component of the company) was sold at a pretax gain of $4,700. It had incurred a $9,500
pretax operating loss during 2019.
4. A tornado, which is an unusual event in the area, caused a $5,400 pretax loss.
5. The income tax rate on all items of income is 30%.
6. The average shareholders’ equity is $90,000.

Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

QUESTION 2 The following is the Trial Balances extracted from the books of Rosemary Garden Enterprise as at 31 December 2021: Debit (RM) Credit (RM) 153,900 Capital Drawings 3,500 Sales 400,000 Purchases 250,000 Return Inwards and outwards 4,150 450 Inventory as at 1 January 2021 Delivery van at cost Office equipment at cost Accumulated depreciation at 1 January 2021 Delivery van Office equipment 65,000 20,000 36,000 4,500 10,800 Account Receivable 90,000 Account Payable 32,000 Insurance on machinery 750 Allowance for doubtful debts as at 1 January 2021 1550 Discount allowed and discount received 350 800 Stationery General expenses Rental expense 300 2,200 3,300 Interest on loan 5,600 Cash in hand 4,250 Cash at bank Carriage inwards Wages and salaries expenses 10% Long term investment 8% Loan from Tekun 9,000 1,500 16,100 162,000 70,000 674,000 TOTAL 674,000 Additional information: a) The closing inventory as at 31 December 2021 is RM 30,000. b) The amount of a debtor of RM750 is to be…
Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances taken from its December 31, 2019 adjusted trial balance: Sales (net) $124,000 Operating expenses $26,300 Interest expense 4,600 Common stock, $5 par 16,500 Cost of goods sold 53,000 Retained earnings, 1/1/2019 41,700 The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.04 per share vas declared and paid. 2. Land was sold at a pretax gain of $5,900. 3. Division X (a major component of the company) vas sold at a pretax gain of $4,670. It had incurred a $9,470 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,310 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders' equity is $89,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. Round earnings…
Following are selected balance sheet accounts of Sheffield Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Selected balance sheet accounts Assets Accounts receivable Property, plant, and equipment Accumulated depreciation-plant assets Liabilities and stockholders' equity. Bonds payable Dividends payable Common stock, $1 par Additional paid-in capital Retained earnings Depreciation Gain on sale of equipment Net income Additional information: 1. 2. 3. (a) (b) (c) (d) 2020 $34,000 Proceeds from the sale of equipment. Cash dividends paid. 278,500 (176,300 ) (168,400) 2020 Redemption of bonds payable. $49,000 8,000 22,100 9,100 104,600 Selected income statement information for the year ended December 31, 2020: Sales revenue $154,400 38,100 2019 14,700 $24,100 30,900 249,400 2019 $45,900 5,100 18,900 3,000…
Compute the following ratios for 2025 and 2024. a. Currentratio b. Inventory turnover. (Inventory on December 31,2023 , was$400.) c. Profit margin. d. Return on assets. (Assets on December 31, 2023, were$2,300.) e. Return on common stockholders' equity. (Stockholders' equity-common on December 31,2023, was$950.) f. Debt to assets ratio. g. Times interest earned.
# 4) Using the following Company X information, prepare a Retained Earnings Statemen Retained earnings balance January 1, 2019, $121,500 Net income for year 2019, $145,800 Dividends declared and paid for year 2019, $53,000
Required: 1. Calculate the total current assets at December 31, 2021. 2. Calculate the total liabilities and stockholders' equity at December 31, 2021. 3. Calculate the earnings from operations (operating income) for the year ended December 31, 2021. 4. Calculate the net income (or loss) for the year ended December 31, 2021. 5. What was the average income tax rate for the company for 2021? 6. If 48,000 of dividends had been declared and paid during the year, what was the January 1, 2021, balance of retained earnings? Assume that all balance sheet items reflect account balances at December 31, 2021 of ABC Ind, and that all income statement items reflect activities that occurred during the year then ended. Accounts receivable Depreciation expense Land Cost of goods sold Retained earnings Cash Equipment Supplies Accounts payable Service revenue Interest expense Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Net sales 99,000…
Two income statements for Cornea Company follow: Cornea Company Income Statements For Years Ended December 31 2018 2019 Fees earned .... $1,640,000 $1,300,000 Operating expenses. 715,000 869,200 $ 770,800 $ 585,000 Operating income.... a. Prepare a vertical analysis of Cornea Company's income statements. b. Does the vertical analysis indicate a favorable or an unfavorable trend?
True or False? You can construct a sources and use statement for 2021 if you have a company's year-end balance sheets for 2021 and 2022
1.32. Creating Balance Sheets and Income Statements. Using the information in the below table, prepare a classified balance sheet for Erie Company as of December 31, 2019 and December 31, 2020, along with multi-step income statements for the years then ended
Applying the Fundamental Accounting Equation At the beginning of 2019, KJ Corporation had total assets of $554,000, total liabilities of $261,800, common stock of $139,300, and retained earnings of $152,900. During 2019, KJ had net income of $225,200, paid dividends of $74,400, and issued additional common stock for $93,900. KJ's total assets at the end of 2019 were $721,800. Required: Calculate the amount of liabilities that KJ must have at the end of 2019 in order for the balance sheet equation to balance.