Ch04-Brief Exercises

Ch04-Brief Exercises - Chapter 4 Solutions to Brief...

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Chapter 4 – Solutions to Brief Exercises BRIEF EXERCISE 4-1 Tim Allen Co. Income Statement For the Year 2007 Revenues Sales. ....................................................................... $540,000 Expenses Cost of goods sold. ................................................ $320,000 Wage expense. ....................................................... 120,000 Other operating expenses. .................................... 10,000 Income tax expense. .............................................. 25,000 Total expenses. ............................................. 475,000 Net income . ....................................................................... $65,000 Earnings per share . .......................................................... $0.65* *$65,000 ÷ 100,000 shares. Note: The increase in value of the company reputation and the unrealized gain on the value of patents are not reported.
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BRIEF EXERCISE 4-2 Turner Corporation Income Statement For the Year Ended December 31, 2007 Revenues Net sales . .............................................................. $2,400,000 Interest revenue . .................................................. 31,000 Total revenues. ............................................. 2,431,000 Expenses Cost of goods sold. .............................................. $1,250,000 Selling expenses. ................................................. 280,000 Administrative expenses. .................................... 212,000
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Ch04-Brief Exercises - Chapter 4 Solutions to Brief...

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