Net income 283 c PROBLEM 4 1 Continued DICKINSON COMPANY Retained Earnings

Net income 283 c problem 4 1 continued dickinson

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Net income ............................................................... $ 2.83 c
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PROBLEM 4-1 (Continued) DICKINSON COMPANY Retained Earnings Statement For the Year Ended December 31, 2014 Retained earnings, January 1 ................................. $     980,000 Add:  Net income ...................................................          1,496,000 2,476,000 Less   Dividends declared on:   Preferred stock ............................................. $  80,000   Common stock .............................................    250,000             330,000 Retained earnings, December 31 ........................... $  2,146,000 a $2,416,000 – $80,000 = $4.67 500,000 shares b $1,886,000 – $80,000 = $3.61 500,000 shares c $1,496,000 – $80,000 = $2.83 500,000 shares PROBLEM 4-4
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(a) TWAIN CORPORATION Income Statement For the Year Ended June 30, 2014 Sales       Sales revenue ............................................................... $1,578,500       Less:  Sales discounts ................................................. $31,150                   Sales returns and allowances .........................    62,300             93,450       Net sales ....................................................................... 1,485,050 Cost of goods sold .............................................................           896,770 Gross profit ......................................................................... 588,280 Operating Expenses       Selling expenses           Sales commissions .................................................. 97,600           Salaries and wages expense ................................... 56,260           Travel expense ......................................................... 28,930           Delivery expense ...................................................... 21,400           Entertainment expense ............................................ 14,820           Telephone and Internet expense ............................ 9,030
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  • Spring '14
  • Revenue, ........., TWAIN¬†CORPORATION

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