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Research Case 18–4
FASB codification; comprehensive income; locate and extract relevant information and authoritative support for a financial reporting issue; integrative; Cisco Systems
• LO18–2
Real World Financials
Required:
1. Locate the financial statements of Cisco at www.sec.gov or Cisco’s website. Search the 2015 annual report for information about how Cisco accounts for comprehensive income. What does Cisco report in its
2. Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Identify the specific citation from the authoritative literature that describes the two alternative formats for reporting comprehensive income.
3. What is comprehensive income? How does it differ from net income? Where is it reported in a balance sheet?
4. One component of Other comprehensive income for Cisco is “net unrealized gains on investments.” What does this mean? From the information Cisco’s financial statements provide, determine how the company calculated the $61 million accumulated other comprehensive income at the end of fiscal 2015.
5. What might be possible causes for the “Other” component of Cisco’s Other comprehensive income? Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum, and alumina. The following is a press release from the company:
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Chapter 18 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
- Selected comparative financial statements of Korbin Company follow. Sales KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ 512,008 $ 392,240 2019 $ 272,200 Cost of goods sold 308,229 245,542 174,208 Gross profit 203,779 146,698 97,992 Selling expenses 72,705 54,129 35,930 Administrative expenses 46,081 34,517 22,593 Total expenses 118,786 88,646 58,523 Income before taxes .84,993 58,052 39,469 Income tax expense 15,809 11,901 8,012 Net income $ 69,184 $ 46,151 $ 31,457 KORBIN COMPANY Comparative Balance Sheets Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings December 31 2021 2020 2019 $ 54,370 0 $ 36,390 600 $ 48,645 3,870 99,436 90,776 53,339 Total liabilities and equity $ 153,806 $ 127,766 $ 105,854 $ 22,456 $ 19,037 $ 18,524 68,000 68,000 50,000 8,500 8,500 5,556 54,850 32,229 31,774 $ 153,806 $ 127,766 $ 105,854arrow_forwardprovide correct answer mearrow_forwardgeneral accountingarrow_forward
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