Chapter_4_Income_Statement_And_Related_Information_Crazy_Horse_Solution

Chapter_4_Income_Statement_And_Related_Information_Crazy_Horse_Solution

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Crazy Horse, Inc. Income Statement For the year ended December 31, 2005 Sales $25,000,000 Cost of Goods Sold (17,000,000) Gross Profit 8,000,000 Operating Expenses: Selling, General and Administrative (4,700,000) Operating Income 3,300,000 Other revenues and gains: Interest revenue $ 70,000 Gain on sale of investments 110,000 180,000 Other expenses and losses: Write-off of goodwill (520,000) Income from continuing operations before taxes 2,960,000 Income tax expense (888,000) Income from continuing operations 2,072,000 Discontinued operations: Operating income, net of $90,000 taxes 210,000 Loss on disposal, net of $180,000 taxes (420,000) (210,000) Income before extraordinary loss 1,862,000 Extraordinary Loss-Flood damage, net of $150,000 taxes
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (350,000) Net income $1,512,000 Earnings per share: Income from continuing operations $6.67* Discontinued operations (.70) Extraordinary loss (1.17) Net Income $4.80 *{2,072,000 – 70,000 (preferred dividends)}/300,000 shares = $6.67 per share Crazy Horse, Inc. Statement of Retained Earnings For the year ended December 31, 2005 Retained Earnings, December 31, 2004 $980,000 Add: Net Income for 2005 1,512,000 Less: Common Stock Dividends Declared for 2005 250,000 Less: Preferred Stock Dividends Declared for 2005 70,000 Retained Earnings, December 31, 2005 $2,172,000...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern