Restricted is subtracted from retained earnings p4 1

Info icon This preview shows pages 13–21. Sign up to view the full content.

View Full Document Right Arrow Icon
restricted is subtracted from retained earnings P4-1 Sales 25,000,000  Cost of goods sold 16,000,000  Gross profit 9,000,000  Operating expenses Selling and administrative expenses 4,700,000  Income from operations 4,300,000  Other revenue (expenses) Interest revenue 70,000  Write off of goodwill (820,000) Gain on the sale of investments 110,000  Total other revenue (expenses) (640,000) Income before taxes 3,660,000  Income tax 1,244,000  Income from continuing operations 2,416,000  Discontinued Operations Loss on disposition of the wholesale division 440,000  net of tax Loss on operations of the wholesale division 90,000  net of tax Total loss on discontinued operations 530,000  Income before extraordinary item 1,886,000  Extraordinary item - loss due to flood damage 390,000  Net income 1,496,000  Per share of common stock Income from continuing operations 4.83 
Image of page 13

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

View Full Document Right Arrow Icon
Discontinued operations (1.06) Extraordinary loss, net of tax (0.78) Net income 2.99  Retained earnings, January 1, as reported Add: Net income Less: Cash dividends Preferred stock 80,000  Common stock 250,000  Retained earnigns, December 31 P4-6 A) Retained earnings, January 1, as reported Correction for understatement of net income in prior period (income earned 2009) Cummulative change for change in inventory valuation (LIFO to FIFO Retained earnings, January 1, as adjusted Add: Net income Less: Cash dividends Retained earnigns, December 31 B) Gain on sale of investment belongs on the income statement under other gains. Refund on litigation will go on the income statement under other revenue. Loss on discontinued operation goes on net income under discontinued operations. Write off goes on income statement under other revenue/expenses. CA4-4 A) Earnings management is a strategy used by the management of a company to delib manipulate the company's earnings so that figure match a pre-determined targ B)
Image of page 14
of revenue and expenses.
Image of page 15

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

View Full Document Right Arrow Icon
and management need. 980,000  (26,400) 953,600  134,640  1,088,240  45,000  1,043,240  2007  2008  2009  2010  40,000  115,000  225,000 
Image of page 16
(15,000) 40,000  115,000  210,000  40,000  125,000  160,000  105,000  40,000  165,000  275,000  315,000  50,000  50,000  75,000  40,000  115,000  225,000  240,000 
Image of page 17

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

View Full Document Right Arrow Icon
980,000  1,496,000  2,476,000  330,000  2,146,000  257,600  25,400  (23,200) 259,800  52,300  312,100  32,000  280,100  . iberately get.
Image of page 18
E5-1 A) Owners Equity H) Liabilities B) Owners Equity I) Liabilities C) Owners Equity J) Current Assets D) Current Liabilities K) Current Liabilities E) Property, Plant, and Equipment L) Current Liabilities F) Property, Plant, and Equipment M) Current Assets G) Current Assets N) Current Liabilities E5-2 1 H 11 B 2 D 12 F 3 F 13 A 4 F 14 H 5 C 15 C 6 A 16 G 7 F 17 A 8 G 18 A 9 A 19 G 10 A 20 F E5-3 1 A 10 F 2 B 11 A 3 F 12 F 4 A 13 A 5 F 14 C AND N 6 H 15 F 7 I 16 X 8 D 17 F 9 A 18 C E5-4 Current assets Cash      Less: Cash restricted for plant expansion Accounts receivable      Less: Allowance for doubtful accounts Notes receivable Receivables - Officers Inventories Finished goods Raw materials Work in Process           Total current assets
Image of page 19

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

View Full Document Right Arrow Icon
Long term investments Preffered stock investment
Image of page 20
Image of page 21
This is the end of the preview. Sign up to access the rest of the 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