1
Income Statement:
The income statement is one of the primary financial statements to determine the net operating results, i.e. profit or loss. All the revenue items and expense items are shown here and the expenses are subtracted from the revenues to determine the net profit or loss. When the revenues exceed the expenses, it will be treated as a profit and a loss will occur in case the expenses exceed the revenue.
To prepare: Year-end income statement.
2
Statement of
Statement of retained earnings forms part of the financial statement that is prepared as per the applicable financial reporting framework. This statement shows the changes in the retained earnings of the entity for a particular period. It starts with the beginning balance and net income is added to it (in case of loss, it is subtracted). Any dividend distributions are subtracted and the ending balance of retained earnings is reported on the
To prepare: Year-end statement of retained earnings.
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 1 Solutions
FINANCIAL+MANAG.ACCT.
- Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)arrow_forwardJuroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.arrow_forwardJasmine Company provided the following income statements for its first 3 years of operation: Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using net sales as the base. (Note: Round answers to the nearest whole percentage.)arrow_forward
- Jasmine Company provided the following income statements for its first 3 years of operation: Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using Year 1 as the base period. (Note: Round answers to the nearest whole percentage.)arrow_forwardCuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 3 by expressing each line item for Year 3 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)arrow_forwardThe following data (in millions) are taken from the financial statements of Target Corporation: a. For Target Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: 1. Revenue 2. Operating expenses 3. Operating income b. What conclusions can you draw from your analysis of the revenue and the total operating expenses?arrow_forward
- Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)arrow_forwardThe income statement of Pratt Inc. reports net sales of $3,749.9 million for the current year. The balance sheet reports accounts receivable, net of $535.3 million at December 31 of the current year and $572.2 million at December 31 of the previous year. The days sales outstanding in the current year are:arrow_forwardExercise 1-24 (Algo) Linking the statement of retained earnings and balance sheet LO P2 Mahomes Co. reported the following data at the end of its first year of operations on December 31. Cash $ 9,000 10,000 Accounts receivable Equipment 12,000 Land 43,000 Accounts payable 6,000 Common stock 30,000 Dividends 25,000 Net income 63,000 (a) Prepare its year-end statement of retained earnings. (b) Prepare its year-end balance sheet, using retained earnings calculated in part a.arrow_forward
- Preparing a Single-Step Income Statement The following items are from the adjusted trial balance of Bailey Corp. on December 31, the end of its annual accounting period. Assume an average 25% income tax on all items. Weighted average shares of common stock outstanding for the year were 10,000. Sales revenue Depreciation for the period Rent revenue Gain on sale of investment Cost of goods sold Selling expenses General and administrative expenses Interest revenue Interest expense Loss on sale of investment $645,200 6,000 2,400 2,000 330,000 136,000 110,000 900 1,500 22,000 Prepare a single-step income statement for the 12 months ended December 31, including the earnings per share disclosures. Report income taxes in its own section. Note: Enter the answer for earnings per share in dollars and cents, rounded to the nearest penny. Note: Do not enter any negative signs with your answers.arrow_forwardPrepare a statement of retained earnings for Tidal Company for the current year ended December 31 using the following data. (Amounts to be deducted should be indicated by a minus sign.) Cash dividends declared and paid in current year Retained earnings at December 31, prior year Net income in current year $ 10,400 64,800 37,800 Tidal Company Statement of Retained Earnings For Current Year Ended December 31arrow_forwardAn analyst has collected the following information regarding a company in advance of its year-end earnings announcement (in millions): Estimated net income $ 200 Beginning retained earnings $ 1,400 Estimated distributions to owners $ 100 Th e analyst’s estimate of ending retained earnings (in millions) should be closest to: C . $1,700.arrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)