Solve this problem The following financial information was summarized from theaccounting records of Block Corporation for the current yearended December 31:Software HardwareCorporateDivision DivisionTotalCost of goods sold$45,655 $28,845Direct operating$27,883 $22,356expensesNet sales$91,379 $69,251Interest expense$2,640General overhead$18,941Income tax$4,200What is the income from operations for the HardwareDivision? Select the correct answer. $18,050, $40,406,$28,845, or $46,895?

Income from Operations Calculation : Income from Operations = Net Sales - Cost of Goods…

Answered: The following financial information was…

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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The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: RailsDivision LocomotiveDivision CorporateTotal Cost of goods sold $46,700 $29,300 Direct operating expenses 26,400 20,400 Sales 98,200 69,700 Interest expense $2,200 General overhead 19,900 Income tax 4,500 The net income for Train Corporation is a.$73,800 b.$91,900 c.$18,500
A condensed income statement for the Commercial Division of Maxell Manufacturing Inc. for the year ended December 31, 20Y9, is as follows: 1 Sales $3,850,000.00 2 Cost of goods sold 2,420,000.00 3 Gross profit $1,430,000.00 4 Operating expenses 1,045,000.00 5 Income from operations $385,000.00 6 Invested assets $2,750,000.00 Assume that the Commercial Division received no charges from service departments. The president of Maxell Manufacturing has indicated that the division’s return on a $2,750,000 investment must be increased to at least 18.00% by the end of the next year if operations are to continue. The division manager is considering the following three proposals: Proposal 1: Transfer equipment with a book value of $313,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would exceed the amount of depreciation expense on the old equipment by $108,000. This increase in…
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Financial Information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Earnings before taxes (EBT) Taxes (25%) Net Income Common dividends Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2020 2021: $ b. What was the 2021 free cash flow? 2021 $3,300.0 2,805.0 $495.0 $ 2020 $3,000.0 2,550.0 $450.0 72.0 $378.0 66.0 $312.0 124.8 $187.2 $181.6 $149.8 -Select- 86.0 $ 409.0 72.6 $ 336.4 134.6 $201.8 2021 50.0 $ 483.0 725.0 $1,258.0 864.0 $2,122.0 $264.0 225.0 Notes payable 66.0 Total current liabilities $ 555.0 Long-term bonds 660.0 Total liabilities…
Presented below are the condensed income statements of Maine Corporation for the years ended December 31, 20x2, and 20x1. 20x2 20x1 Sales P2,500,000 P2,450,000 Cost of Goods Sold 1,675,000 1,650,000 Gross Profit 825,000 800,000 Operating Expenses 337,500 325,000 Operating income 487,500 475,000 Gain on sale of division 100,000 - 587,500 475,000 Income tax expense 176,250 142,500 Net income P411,250 P332,500 On October 10, 20x2, Maine entered into an agreement to sell the assets of one (1) 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, 20x2, for P875,000.…
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (25%) Net income Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Common dividends Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Common equity 2020: $ 2021: $ b. What was the 2021 free cash flow? 2021 $2,875.0 2,444.0 $ 431.0 86.0 $345.0 63.3 $281.7 112.7 $ 169.0 $152.1 $ -Select- 2021 46.0 $ 2020 $2,500.0 2,125.0 $ 375.0 75.0 $300.0 55.0 $ 245.0 98.0 $147.0 $117.6 450.0 540.0 $1,036.0…
Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows. Also, assume a tax rate of 31%. Somerville CompanyIncome StatementFor the Year Ended December 31, 20X2 Amount Percent Net sales $8,281,989 100.0% Less: Cost of goods sold (5,383,293) 65.0 Gross margin $2,898,696 35.0 Less: Operating expenses (1,323,368) 16.0 Operating income $1,575,328 19.0 Less: Interest expense (50,000) 0.6 Income before taxes $1,525,328 18.4 Less: Income taxes (31%)* (472,852) 5.7 Net income $1,052,476 12.7 * Includes both state and federal taxes. Somerville CompanyStatement of Retained EarningsFor the Year Ended December 31, 20X2 Balance, beginning of period $1,979,155 Net income $1,052,476 Total $3,031,631 Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period…
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Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Santiago Systems Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $5,345,000 100.0% Less: Cost of goods sold (3,474,250) 65.0 Gross margin $1,870,750 35.0 Less: Operating expenses (1,140,300) 21.3 Operating income $730,450 13.7 Less: Interest expense (27,000) 0.5 Income before taxes Less: Income taxes (40%)* $703,450 13.2 (281,380) 5.3 Net income $422,070 7.9 * Includes both state and federal taxes.
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $49,900; total assets, $249,400; common stock, $88,000; and retained earnings, $25,647.) CABOT CORPORATIONIncome StatementFor Current Year Ended December 31 Sales $ 456,600 Cost of goods sold 297,950 Gross profit 158,650 Operating expenses 98,900 Interest expense 4,400 Income before taxes 55,350 Income tax expense 22,297 Net income $ 33,053 CABOT CORPORATIONBalance SheetDecember 31 Assets Liabilities and Equity Cash $ 18,000 Accounts payable $ 19,500 Short-term investments 9,600 Accrued wages payable 3,600 Accounts receivable, net 30,000 Income taxes payable 4,700 Merchandise inventory 34,150 Long-term note payable, secured by mortgage on plant assets 71,400 Prepaid expenses 2,850 Common…
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $52,900; total assets, $209,400; common stock, $82,000; and retained earnings, $40,297.) CABOT CORPORATIONIncome StatementFor Current Year Ended December 31 Sales $ 453,600 Cost of goods sold 297,650 Gross profit 155,950 Operating expenses 99,600 Interest expense 4,600 Income before taxes 51,750 Income tax expense 20,847 Net income $ 30,903 CABOT CORPORATIONBalance SheetDecember 31 Assets Liabilities and Equity Cash $ 18,000 Accounts payable $ 18,500 Short-term investments 8,400 Accrued wages payable 2,800 Accounts receivable, net 28,800 Income taxes payable 3,600 Merchandise inventory 32,150 Long-term note payable, secured by mortgage on plant assets 65,400 Prepaid expenses 2,850 Common…
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $49,900; total assets, $199,400; common stock, $86,000; and retained earnings, $37,787.) CABOT CORPORATIONIncome StatementFor Current Year Ended December 31 Sales $ 453,600 Cost of goods sold 297,750 Gross profit 155,850 Operating expenses 99,400 Interest expense 4,600 Income before taxes 51,850 Income tax expense 20,887 Net income $ 30,963 CABOT CORPORATIONBalance SheetDecember 31 Assets Liabilities and Equity Cash $ 20,000 Accounts payable $ 15,500 Short-term investments 8,200 Accrued wages payable 4,600 Accounts receivable, net 29,200 Income taxes payable 3,400 Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 2,800 Common…

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