{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 4 13th Edition Brief Exercises

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

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Background image of page 1

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

View Full Document Right Arrow Icon
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 Net income ...................................................................... $ 310,800 Earnings per share** ...................................................... $4.44 *($2,431,000 – $1,450,000 – $280,000 – $212,000 – $45,000) X 30% = $133,200. **$310,800 ÷ 70,000 shares.
Background image of page 2
BRIEF EXERCISE 4-3 BRISKY CORPORATION Income Statement For the Year Ended December 31, 2010 Net sales ................................................................ $2,400,000 Cost of goods sold ................................................ 1,450,000 Gross profit ................................................. 950,000 Selling expenses ................................................... $280,000 Administrative expenses ...................................... 212,000 492,000 Income from operations ....................................... 458,000 Other revenue and gains
Background image of page 3

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

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}