Unit 8 Exercise - Unit 8 Exercise BUSI 1043 Introduction to Financial Accounting Written by Bo Presented to Professor Kremena Nedeva Saturday March

Unit 8 Exercise - Unit 8 Exercise BUSI 1043...

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Unit 8 ExerciseBUSI 1043 Introduction to Financial AccountingWritten by: BoPresented to: Professor Kremena NedevaSaturday, March 3, 2018Yorkville University
Question 1:Earnings per share = WeightedaverageNet income – Preferreddividends¿of shares outstanding¿Earnings per share = 30,0001,20015,000Earnings per share = $1.92Question 2:1.2016 Dec. 31Income Tax Expense (110,000 x 0.25)...................................27,500Income Tax Payable (90,000 x 0.25)...............................22,500Future Income Tax Liability............................................5,000Recorded income tax for the year.2.Black Panther Comics Ltd.Income StatementYear Ended December 31, 20162016Income Before Income Taxes......................................................$110,000Income taxes......................................................................................................................................................................................(22,500)
Net Income.........................................................................................................................................................................................$87,500Black Panther Comics Ltd.Consolidated Balance SheetDecember 31, 20162016Current liabilitiesIncome and other taxes payable.............................................$22,500Non-current liabilitiesFuture income taxes...............................................................5,000Total liabilities..........................................................................................................................................................................................$27,500Question 3:Operating RevenuesIncome from continuing operations before income taxes..........................................................................................................................................

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