17000 33000 Net income 200640 Per share of common stock Income before

17000 33000 net income 200640 per share of common

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17,000 (33,000 ) Net income .................................................................................................. $ 200,640 Per share of common stock: Income before extraordinary item ($233,640 ÷ 60,000) ................................................................... $3.89* Extraordinary item, net of tax ....................................................... (.55 ) Net income ($200,640 ÷ 60,000) .................................................. $3.34 *Rounded (b) IVAN CALDERON CORP. Retained Earnings Statement For the Year Ended December 31, 2014 Retained earnings, Jan. 1, as reported ......................................................................... $ 980,000 Correction for overstatement of net income in prior period (depreciation error) (net of $18,700 tax) ....................................................... (36,300 ) Retained earnings, Jan. 1, as adjusted ......................................................................... 943,700 Add: Net income ......................................................................................................... 200,640 1,144,340
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Less: Dividends declared ............................................................................................ 45,000 Retained earnings, Dec. 31 .......................................................................................... $1,099,340
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E 13 Net income: Income from continuing operations before income tax $23,650,000 Income tax (35% X $23,650,000) 8,277,500 Income from continuing operations 15,372,500 Discontinued operations Loss before income tax $3,225,000 Less: Applicable income tax (35%) 1,128,750 (2,096,250) Net income $13,276,250 Preferred dividends declared: $ 1,075,000 Weighted average common shares outstanding 4,000,000 Earnings per share Income from continuing operations $3.57* Discontinued operations, net of tax (.52 )** Net income $3.05 *** *($15,372,500 – $1,075,000) ÷ 4,000,000. (Rounded) **$2,096,250 ÷ 4,000,000. (Rounded) ***($13,276,250 – $1,075,000) ÷ 4,000,000.
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E 14 (a) 2014 Income before income tax $450,000 Income tax (35%) 157,500 Net Income $292,500 (b) Cumulative effect for years prior to 2014. Year Weighted- Average FIFO Difference Tax Rate (35%) Net Effect 2012 $370,000 $395,000 $25,000 2013 390,000 430,000 40,000 Total $65,000 $22,750 $42,250 (c) 2014 2013 2012 Income before income tax $450,000 $430,000 $395,000 Income tax (35%) 157,500 150,500 138,250 Net income $292,500 $279,500 $256,750
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E 15 (a) ROXANNE CARTER CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2014 Sales revenue ......................................................................................................... $1,200,000 Cost of goods sold ................................................................................................. 750,000 Gross profit ........................................................................................................... 450,000 Selling and administrative expenses ..................................................................... 320,000 Net income ............................................................................................................ 130,000 Unrealized holding gain, net of tax ....................................................................... 18,000 Comprehensive income ......................................................................................... $ 148,000 (b) ROXANNE CARTER CORPORATION Income Statement and Comprehensive Income Statement For the Year Ended December 31, 2014 Sales ...................................................................................................................... $1,200,000 Cost of goods sold ................................................................................................. 750,000 Gross profit ........................................................................................................... 450,000 Selling and administrative expenses ..................................................................... 320,000 Net income ............................................................................................................ $ 130,000 Comprehensive Income Net income ............................................................................................................ $ 130,000 Unrealized holding gain ........................................................................................ 18,000 Comprehensive income ......................................................................................... $ 148,000
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P 4 (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 Maintenance and repairs expense ............................... 6,200 Depreciation expense ................................................. 4,980 Bad debt expense ........................................................ 4,850
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