FIN 3162 Homework BS &IS

FIN 3162 Homework BS &IS - FIN 3162 Homework 1....

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FIN 3162 Homework 1. Presented below is an income statement for Morton Company for the year ended December 31, 2007. Morton Company Income Statement For the Year Ended December 31, 2007 Net sales $800,000 Costs and expenses: Cost of goods sold 640,000 Selling, general, and administrative expenses 70,000 Other, net 20,000 Total costs and expenses 730,000 Income before income taxes 70,000 Income taxes 21,000 Net income $ 49,000 Additional information: 1. "Selling, general, and administrative expenses" included a usual but infrequent charge of $7,000 due to a loss on the sale of investments. 2. "Other, net" consisted of interest expense, $10,000, and an extraordinary loss of $10,000 before taxes due to earthquake damage. If the extraordinary loss had not occurred, income taxes for 2007 would have been $24,000 instead of $21,000. 4. Morton had 20,000 shares of common stock outstanding during 2007. Instructions Using the single-step format, prepare a corrected income statement, including the appropriate per share disclosures. 2. —Income statement and retained earnings statement. Malone Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2007 an analysis of the accounts and discussions with company officials
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FIN 3162 Homework BS &IS - FIN 3162 Homework 1....

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