chapter4 homework solutions - BRIEF EXERCISE 4-2 BRISKY CORPORATION Income Statement For the Year Ended Revenues Net sales Interest revenue Total

chapter4 homework solutions - BRIEF EXERCISE 4-2 BRISKY...

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BRIEF EXERCISE 4-2 BRISKY CORPORATION Income Statement For the Year Ended December 31, 2012 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.
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BRIEF EXERCISE 4-3 BRISKY CORPORATION Income Statement For the Year Ended December 31, 2012 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 Interest revenue .......................................... 31,000 Other expenses and losses Interest expense ......................................... 45,000 14,000 Income before income tax .................................... 444,000 Income tax expense .............................................. 133,200 Net income ............................................................ $ 310,800 Earnings per share ............................................... $4.44* *$310,800 ÷ 70,000 shares.
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BRIEF EXERCISE 4-4 Income from continuing operations .................... $10,600,000 Discontinued operations Loss from operation of discontinued restaurant division (net of tax) ............... $315,000 Loss from disposal of restaurant division (net of tax) .................................. 189,000 504,000 Net income ............................................................ $10,096,000 Earnings per share ...............................................
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