Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Question
Chapter 6, Problem 18PC
a.
To determine
Make discussion about the following items when earnings to forcast the future profitability of H:
- 1. Gain on sale of a portion of the branded product line.
- 2. Extraordinary loss.
b.
To determine
Explain the adjustment that can be made towards H’s net income for each item in Part a.
c.
To determine
Make discussion about the reclassification adjustment made by H for sale and promotion of incentive costs (Item 3).
d.
To determine
Prepare common-size income statement for year 10, 11, and 12.
e.
To determine
Prepare common-size income statement for year 10, 11, and 12 after making income adjustments.
f.
To determine
Make assessment of the changes in the profitability of H during three-year period.
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Financial Reporting, Financial Statement Analysis and Valuation
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