I2PT32PDFS04w

I2PT32PDFS04w - INTERMEDIATE ACCOUNTING II (3112) Exam 3,...

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INTERMEDIATE ACCOUNTING II (3112) Exam 3, Part II LOMAX COMPANY Income Statement For Year Ended 12-31-x2 Sales . . . . . . . . . . . . . . . . . . . . . . $2,000,000 Less cost of goods sold . . . . . . . . 1,300,000 Gross margin . . . . . . . . . . . . . . . . 700,000 Less operating expenses . . . . . . . . 490,000 * Net operating income . . . . . . . . . . 210,000 Nonoperating items: Gain on sale of investments . . . . $60,000 Loss on sale of equipment 20,000 40,000 Income before taxes . . . . . . . . . . . 250,000 Less income taxes . . . . . . . . . . . . . 80,000 Net income . . . . . . . . . . . . . . . . . . $ 170,000 * Contains $95,000 in depreciation expense and $6,000 in amortization of goodwill. LOMAX COMPANY Comparative Balance Sheets December 31, 19x2, and 19x1 Assets 19x2 19x1 Current assets: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,000 $ 27,000 Marketable securities . . . . . . . . . . . . . . . . . . . . . . 19,000 13,000 Accounts receivable, net . . . . . . . . . . . . . . . . . . . . 710,000 530,000 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 848,000 860,000 Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 5,000 Total current assets . . . . . . . . . . . . . . . . . . . . 1,629,000 1,435,000 Long-term investments . . . . . . . . . . . . . . . . . . . . . 60,000 110,000 Loans to subsidiaries . . . . . . . . . . . . . . . . . . . . . . . 130,000 80,000 Plant and equipment . . . . . . . . . . . . . . . . . . . . . . . 3,170,000 2,600,000 Less accumulated depreciation . . . . . . . . . . . . . . 810,000 755,000 Net plant and equipment . . . . . . . . . . . . . . . . . . . . 2,360,000 1,845,000 Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,000
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I2PT32PDFS04w - INTERMEDIATE ACCOUNTING II (3112) Exam 3,...

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