Chapter 4 The Income Statement and Statement of Cash Flows21

Chapter 4 The Income Statement and Statement of Cash Flows21

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Exercise 4-2 (concluded) Requirement 2 GENERAL LIGHTING CORPORATION Income Statement For the Year Ended December 31, 2011 Sales revenue . ...................................................... $2,350,000 Cost of goods sold . .............................................. 1,200,300 Gross profit . ......................................................... 1,149,700 Operating expenses: Salaries . ............................................................. $300,000 Depreciation . ..................................................... 100,000 Rent . .................................................................. 50,000 Loss from inventory write-down . ..................... 200,000 Total operating expenses . .............................. 650,000 Operating income . ............................................... 499,700 Other income (expense): Rental revenue . .................................................
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Unformatted text preview: 80,000 Loss on sale of investments . ............................. (22,500) Interest expense . ............................................... (90,000 ) Total other income (expense), net . ................ (32,500 ) Income before taxes and extraordinary item . ...... 467,200 Income tax expense *. .......................................... 186,880 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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