Chapter 4 The Income Statement and Statement of Cash Flows20

Chapter 4 The Income Statement and Statement of Cash Flows20

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Exercise 4-2 Requirement 1 GENERAL LIGHTING CORPORATION Income Statement For the Year Ended December 31, 2011 Revenues and gains: Sales . ................................................................. $2,350,000 Rental revenue . ................................................. 80,000 Total revenues and gains . .............................. 2,430,000 Expenses and losses: Cost of goods sold . ........................................... $1,200,300 Salaries . ............................................................. 300,000 Depreciation. ...................................................... 100,000 Interest. .............................................................. 90,000 Rent . .................................................................. 50,000 Loss on sale of investments .
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Unformatted text preview: ............................. 22,500 Loss from inventory write-down . ..................... 200,000 Income tax expense *. ....................................... 186,880 Total expenses and losses . ............................. 2,149,680 Income before extraordinary item . ...................... Extraordinary item: Loss from flood damage (net of $48,000 tax benefit) Net income . ......................................................... 280,320 (72,000 ) $ 208,320 Earnings per share: Income before extraordinary item . ...................... Extraordinary loss . .............................................. Net income . ......................................................... $ .93 (.24 ) $ .69 * 40% x $467,200...
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This note was uploaded on 01/08/2011 for the course -2 20101 taught by Professor Georgesanchez during the Spring '10 term at USC.

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