Chapter 4 13th Edition Brief Exercises

Chapter 4 13th Edition Brief Exercises - Chapter 4...

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Chapter 4 – Solutions to Brief Exercises BRIEF EXERCISE 4-1 STARR CO. Income Statement For the Year 2010 Revenues Sales . ....................................................................... $540,000 Expenses Cost of goods sold . ................................................ $330,000 Wage expense . ....................................................... 120,000 Other operating expenses . .................................... 10,000 Income tax expense . .............................................. 25,000 Total expenses . ............................................. 485,000 Net income . ........................................................................ $55,000 Earnings per share . ........................................................... $0.55 * *$55,000 ÷ 100,000 shares. Note : The increase in value of the company reputation and the unrealized gain on the value of patents are not reported.
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BRIEF EXERCISE 4-2 BRISKY CORPORATION Income Statement For the Year Ended December 31, 2010 Revenues Net sales . ............................................................... $2,400,000 Interest revenue . ................................................... 31,000 Total revenues . ............................................. 2,431,000 Expenses Cost of goods sold . .............................................. $1,450,000 Selling expenses . ................................................. 280,000 Administrative expenses . .................................... 212,000 Interest expense . .................................................. 45,000 Income tax expense* . ........................................... 133,200 Total expenses . ........................................... 2,120,200
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Chapter 4 13th Edition Brief Exercises - Chapter 4...

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