Chapter_4_Income_Statement_And_Related_Information_Crazy_Horse_Solution

Chapter_4_Income_Statement_And_Related_Information_Crazy_Horse_Solution

Info iconThis 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
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background 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

This note was uploaded on 02/12/2012 for the course ACCT 3001 taught by Professor Moffitt during the Spring '08 term at LSU.

Page1 / 2

Chapter_4_Income_Statement_And_Related_Information_Crazy_Horse_Solution

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online