Financial Review HO Summer

Financial Review HO Summer - Fin Review Handout Dr Clifford...

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Fin Review Handout Dr. Clifford Brown Summer 2016 1. The following information was taken from the records of Liz’s Theatrical Supplies for 2016. In addition to selling theatrical supplies, the Company owned and operated a theater until October 15, 2016, when Liz sold this component of the business. All listed amounts are pre-tax, but are subject to a 38% income tax rate. Cost of goods sold $490,823 Extraordinary loss 50,000 Income from discontinued operations 70,000 Interest income 4,650 Loss from disposal of discontinued component 95,000 Loss on write-off of obsolete inventory 23,500 Net sales 791,650 Rent revenue 16,000 Selling and administrative expenses 158, 330 Required: Complete a single-step income statement for 2016 using a single-statement format. Weighted average number of shares 40,000.
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EARNINGS PER SHARE (EPS): Income from Continuing Operations $ 86581 / 40000 = $2.16 Discontinued Operations ( $15500)/ 40000 = $0.3875 Extraordinary loss ( $31000 )/40000 =$0.775 Net income $40081/ 40000 = 1.002 Liz’s Theatrical Supplies, Inc. Statement of Income For the Year Ended December 31, 2016 Revenues and gains: Net sales $791650 Rent revenue 16000
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  • Spring '14
  • AndreaM.Zielinski
  • Accounting, Balance Sheet, Generally Accepted Accounting Principles, Continuing Operations, northumberland farm machinery

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