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Quiz #1 The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2013 ($...

Question 1:

The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2010 ($ in 000s):
sales revenue, $22,300
cost of goods sold, $14,500
selling expenses, $2,300
general and administrative expenses, $1,200
dividend revenue from investments, $200
interest expense, $300
Income taxes have not yet been accrued. The company's income tax rate is 40% on all

items of income or loss. The above revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following non-recurring transactions that also occurred during 2010 ($ in 000s). All transactions are material in amount.
o Investments were sold during the year at a loss of $300. Foxworthy also had unrealized losses of $200 for the year on investments accounted for as securities available for sale.
o One of the company's factories was closed during the year. Restructuring costs incurred were $2,000.
o One of Foxworthy's manufacturing facilities located in a foreign country was expropriated. A loss of $800 was recognized. The event is considered to be unusual and infrequent.
o During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to SFAS No. 144. The division had incurred operating income of $800 in 2010 prior to the sale, and its assets were sold at a loss of $1,800.
o In 2010, the company's accountant discovered that depreciation expense in 2009 for the office building was overstated by $300.
o Gains from foreign currency translation adjustments for the year totaled $600.
Required: Calculate and show the following amounts for Foxworthy for 2010:
Operating Income, (b) Income from Continuing Operations after Tax, (c) Net Income, and
Comprehensive Income. (2 points each)

Quiz #1 1. Investments were sold during the year at a loss of $300. 2. One of the company's factories was closed during the year. Restructuring costs incurred were $2,000. The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2013 ($ in 000s): sales revenue, $22,300; cost of goods sold, $14,500; selling expenses, $2,300; general and administrative expenses, $1,200; dividend revenue from investments, $200; interest expense, $300. Income taxes have not yet been accrued. The company's income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2013 ($ in 000s). All transactions are material in amount. 3. One of Foxworthy's manufacturing facilities located in a foreign country was expropriated. A loss of $800 was recognized. The event is considered to be unusual and infrequent. 4. During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $800 in 2013 prior to the sale, and its assets were sold at a loss of $1,800. Required: In a separate Excel worksheet, prepare in proper form a multi-step income statement for Foxworthy for 2013, including basic earnings per share disclosures. Two million shares of common stock were outstanding throughout the year. Note that your name MUST be on the income statement, and it must be formatted to print out legibly on one page. Possible points and due date/time: Total possible points for this quiz are 20. Quizzes without a name or that don't print out on one page will be worth a maximum of 15 points. The quiz must be turned in via the D2L dropbox by 8am on Wednesday Jan 30th. No credit will be received for late quizzes.
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This question was asked on Jan 29, 2013.

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