320CheckFigures_04(1) - The only time you use negatives or...

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CHAPTER 4 Income Statement and Related Information CHECK FIGURES BRIEF EXERCISE 4-6 When a change in method occurs, all prior year financial statements presented must be restated to reflect the change. This is asking you to show 2008-2010 as if the weighted- average inventory method had been used in all three years. EXERCISE 4-8 The write-off of inventory due to obsolescence is an above the line item. We’ll cover this in a later chapter. Check figures: Net income is $134,640; Income from Continuing Operations (before taxes) is $254,000; Ending balance in Retained Earnings is $1,043,240.
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Unformatted text preview: The only time you use negatives or parenthesis is with the EPS amounts - not in the statements. EXERCISE 4-11 The 1/1/10 balance in R/E can be found by adding all prior year Net Income amounts and subtracting all prior year dividend declarations. The balance sheet would add unrestricted and restricted retained earnings together when reporting the total retained earnings balance. Check figure: Ending balance in R/E at 12/31/10 is $215,000. 3-1...
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This note was uploaded on 11/22/2010 for the course ACCT 320 taught by Professor Alee during the Spring '10 term at Kansas State University.

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