Test 2 Homework [PDF]

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E4-4



Multiple step Allen and Wright Income Statement (in thousands) For year ended December 31,2012



A)



Sales revenue Cost of Good Sold Gross Profit Operating Expenses Seling Expense Transportation-out Sales Comissions Depreciation of Sales Equipment Administrative Expense Officers Salaries Depreciation of Office Income from Operations Other gains and revenues Rental Revenue Other expenses and losses Interest Expense Income from continuing operations before income tax Income tax Net Income Earning per Share



B)



Single Step Allen and Wright Income Statement (in thousands) For year ended December 31,2012



Revenues Sales Rental Revenue Total Revenues Expenses Selling Expenses Administrative Expenses Cost of Goods Sold Intest Expense Total Expenses Income from continuing operations before income tax Income tax Net Income



$2,690 7,980 6,480 $ 4,900 3,960



17,150



8,860



Earnings per share E4-5 Parnevik Corp. Income Statement For year ended December 31,2010 Sales Revnue Sales Less: Sales Returns and Allowances Sales returns Net Sales Revenue Cost of Goods Sold Gross profit Selling and Admistrative Epenses Income From other Operations Other revenues and gains Interest Revenue Other expenses and losses Interest Expense Income from continuing operations before income tax Income tax Income Before extraordinary item Extraordinary item- loss from earthquarter damage (less tax of 34% Net Income Per shara of common stock Income from continuing operations Extraordinary item - net tax Net Income



$



150,000 45,000



E4-6 A) Weatherspoon Shoe Co. Income Statement For year ended Decemeber 31, 2010 Net Sales COGS Gross Profit Selling Expenses Wages and salaries expenses Depreciation Expense Materials and supplies Administrative Expenses Wages and salaries expenses



$



114,800 45,500 17,600 $ 135,900



177,900



Other administrative expenses Depreciation Expense Income from Operations Other revenues and gains Rental Revenue Other losses and expenses Interest Expenes Income from continuing Operations before income tax Income tax Net Income



51,700 19,500



207,100



Earning per share B)



Weatherspoon Shoe Co. Income Statement For year ended Decemeber 31, 2010



Revenues Sales Rental revenue Total Revenues Expenses COGS Wages and salaries expenses - sales Materials and supplies Other administrative Expenses Wages and salaries expenses - administrative Depreciation Expense - sales Interest Expense Depreciation Expense - administrative Income from continuing Operations before Income tax Income tax Net Income



$



516,000 114,800 17,600 51,700 135,900 45,500 18,000 19,500



$



636,000 491,000



Earnings per share E4-10 Woods Corporation Income Statement For year ended December 31, 2010 Sales COGS Gross Profit Selling Expenses Admistrative Expenses



Income from operations Other revenue (rent) Other expense (interest) Income from continuing operations before income tax Income tax Income before extraordinary item Extaordinary item - loss of 60,000 *0.66 Net Income Earnings per Share Income before extraodinary Item Extraordinary item Net Income E4-11 A) McEntire Corporation Statement of Retained Earnings For year ended December 31, 2010 Beg. Balance as reported Correction for deprecation erro Cumulative decrease in NI from inventory changing methods Beg. Balance as adjusted Add: Net Income Less: Dividends declared Ending Balance



$



225,000 15,000 27,000 183,000 132,000 100,000 215,000



B) It would change anything. Restricted retained earnings cannot be used to pay dividends. E4-12 Net Income from continuing operatuibs before income tax Income tax Income from continuing operations Discontinued Operations Loss Net Income Preferred stock declared Earnings per share Income from continuing operations Discontinued Operations Net Income



E4-15 Bryan Co. StockHolders' Equity Statement For year ended December 31,2010



Beginning Balance Comprehensive Income Net Income Other Comprehensive Income Unrealized loss Comprehensive Income Dividens Ending Balance



Total $ 520,000



Comprehensive Income



170,000 $ 50,000



$



10,000 630,000



Retained Earnings $ 90,000



170,000



170,000



50,000 120,000 $



10,000 250,000



E4-16 A)



Gibson Inc. Income Statement For year ended December 31,2010



Revenues Sales Rental Revenue Total Revenues



$



1,700,000 40,000



Expenses COGS Selling Expenses Administrative Expenses Total Expenses Net Income from continuing Operations before Income tax Income tax Income from continuig operations Discontinued operations Loss Less: tax Inccome before extraordinary item Extraordinary Item Gain Less: tax Loss Less: tax Net Income Per Share of Common Stock Income from continuing operations Loss on discontinued operations



850,000 300,000 240,000



75,000 25,500



95,000 32,300 60,000 20,400



Income before extraordinary item Extraodinary gain Extraordinary loss Net Income B) Gibson Inc. Statement Of retained earnings For year ended December 31,2010 Beg. Balance Add: Net Income Less: Dividends Ending balance



$



$



600,000 204,600 150,000 654,600



C) Gibson Inc. Statement of Comprehensive Income For year ended December 31, 2010 Net Income Other Comprehensive Income Unrealized holding gain Comprehensive Income



$



204,600



$



15,000 219,600



$96,500 63,570 32,930



26,010 6,920 17,230



$ $



1,860 22,290 7,580 14,710 0.36



$96,500 17,230 113,730



17,150 8,860 63,570 1,860 91,440



$



22,290 7,580 14,710.00



$



0.36



$



1,280,000 195,000 1,085,000 621,000 464,000 291,000 173,000 86,000



$



60,000 199,000 67,660 131,340 79,200 52,140



$



1.31 0.79 0.52



$



980,000 516,000 464,000



385,000 79,000 29,000



$ $



$



$ $



$



18,000 90,000 30,600 59,400 2.97



980,000 29,000 1,009,000



919,000 90,000 30,600 59,400 2.97



4,062,000 2,665,000 1,397,000 1,127,000



$



$ $



$



$



270,000 240,000 176,000 334,000 113,560 220,440 39,600 180,840



2.45 0.44 2.01



21,650,000 7,577,500 14,072,500 2,096,250 11,976,250 860,000



$



3.30 0.52 2.78



Accumulated Other Comprehensive Common Income Stock $ 80,000 $ 350,000



50,000



$



$



30,000 $



1,740,000



1,390,000 350,000 119,000 231,000



49,500 181,500



62,700



$



$



39,600 204,600



0.81 0.50



350,000



$



1.82 0.63 0.40 2.05