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The following information is related to Whispering Company for 2025. Retained earnings balance, January 1, 2025 $1,078,000 Sales revenue 27,500,000 Cost of goods sold 17,600,000 Interest revenue 77,000 Selling and administrative expenses 5,170,000 Write-off of goodwill 902,000 Income taxes for 2025 1,368,400 Gain on the sale of investments 121,000 Loss due to flood damage 429,000 Loss on the disposition of the wholesale division (net of tax) 484,000 Loss on operations of the wholesale division (net of tax) 99,000 Dividends declared on common stock 275,000 Dividends declared on preferred stock 88,000 Whispering Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Whispering sold the wholesale operations to Rogers Company. During 2025, there were 500,000 shares of common stock outstanding all year. (a1) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49. List other revenues and gains before other Expenses and losses.)

The following information is related to Whispering Company for 2025. Retained earnings balance, January 1, 2025 $1,078,000 Sales revenue 27,500,000 Cost of goods sold 17,600,000 Interest revenue 77,000 Selling and administrative expenses 5,170,000 Write-off of goodwill 902,000 Income taxes for 2025 1,368,400 Gain on the sale of investments 121,000 Loss due to flood damage 429,000 Loss on the disposition of the wholesale division (net of tax) 484,000 Loss on operations of the wholesale division (net of tax) 99,000 Dividends declared on common stock 275,000 Dividends declared on preferred stock 88,000 Whispering Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Whispering sold the wholesale operations to Rogers Company. During 2025, there were 500,000 shares of common stock outstanding all year. (a1) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49. List other revenues and gains before other Expenses and losses.)

FINANCIAL ACCOUNTING
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 information is related to Whispering Company for 2025. Retained earnings balance, January 1, 2025 $1,078,000 Sales revenue 27,500,000 Cost of goods sold 17,600,000 Interest revenue 77,000 Selling and administrative expenses 5,170,000 Write-off of goodwill 902,000 Income taxes for 2025 1,368,400 Gain on the sale of investments 121,000 Loss due to flood damage 429,000 Loss on the disposition of the wholesale division (net of tax) 484,000 Loss on operations of the wholesale division (net of tax) 99,000 Dividends declared on common stock 275,000 Dividends declared on preferred stock 88,000 Whispering Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Whispering sold the wholesale operations to Rogers Company. During 2025, there were 500,000 shares of common stock outstanding all year. (a1) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49. List other revenues and gains before other Expenses and losses.)
Transcribed Image Text:The following information is related to Whispering Company for 2025. Retained earnings balance, January 1, 2025 $1,078,000 Sales revenue 27,500,000 Cost of goods sold 17,600,000 Interest revenue 77,000 Selling and administrative expenses 5,170,000 Write-off of goodwill 902,000 Income taxes for 2025 1,368,400 Gain on the sale of investments 121,000 Loss due to flood damage 429,000 Loss on the disposition of the wholesale division (net of tax) 484,000 Loss on operations of the wholesale division (net of tax) 99,000 Dividends declared on common stock 275,000 Dividends declared on preferred stock 88,000 Whispering Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Whispering sold the wholesale operations to Rogers Company. During 2025, there were 500,000 shares of common stock outstanding all year. (a1) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49. List other revenues and gains before other Expenses and losses.)
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