GALLAGHER CORPORATIONIncome StatementFor the Year Ending December 31, 2021Sales revenue950,000Less: Cost of Goods Sold600,000Gross Profit350,000Less Operating Expenses250,000100,000Income from OperationsOther revenues and expenses15,000(3,000)Gain on sale of investmentsLoss on sale of equipment12,000Income before taxes112,000Income taxes45,000Net Income$67,000Additional Information1. Equipment costing $10,000 was sold and was 60% depreciated. New equipment wasalso purchased during the year2. Cash dividends were declared and paid.3. Common stock was exchanged for Land.4. Debt investments costing $35,000 were sold during the year. New debt investmentwere purchased during the year for $5,000.5. Accounts receivable are shown net of the allowance for doubtful accounts, becausethere were no account write-offs during the year.6. Operating expenses include: Depreciation Expense, $21,000, Amortization Expense,and Interest Expense, $3,300Instructions:1. Prepare the Statement of Cash Flows for Gallagher Corporation using the "indirect"method. You need to indlude Supplemental Cash Disclosure information and NonCash Investing and Financing Activities.2. Prepare the Operating Activities Section using the "direct" method. Showsupporting calculations. The Comparative baof December 31, 2021 are provided.nce Sheet, Income Statement and supplemental date for Gallagner Corporation asGALLAGHER CORPORATIONComparative Balance SheetDecember 3120212020AssetsCash65,00051,000Accounts Receivable (net)145,000122,000Inventory75,00061,000Debt Investments (available for sale)46,00076,000Equipment70,00048,000Accumulated Depreciation: EquipmentBuildings(20,000)(14,000)145,000145,000Accumulated Depreciation: Buildings(37,000)40,000(28,000)25,000Land8,000$ 537,000Intangibles9,000Total Assets$ 495,000LiabilitiesAccounts PayableIncome Taxes Payable66,00060,00012,00010,000Long-Term Notes Payable62,00070,000$ 140,000$ 140,000Stockholders' EquityCommon Stock310,000260,000Retained Earnings92,00095,000Treasury Stock(5,000)Total Stockholders' Equity397,000355,000Total Liabilities and Stockholders' Equity537,000495,000

Name: GALLAGHER CORPORATIONIncome StatementFor the Year Ending December 31,
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Description: GALLAGHER CORPORATIONIncome StatementFor the Year Ending December 31, 2021Sales revenue950,000Less: Cost of Goods Sold600,000Gross Profit350,000Less Operating Expenses250,000100,000Income from OperationsOther revenues and expenses15,000(3,000)Gain o

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Instructions: 1. Prepare the Statement of Cash Flows for Gallagher Corporation using the "indirect" method. You need to include Supplemental Cash Disclosure information and Non Cash Investing and Financing Activities. 2. Prepare the Operating Activities Section using the "direct" method. Show

Instructions: 1. Prepare the Statement of Cash Flows for Gallagher Corporation using the "indirect" method. You need to include Supplemental Cash Disclosure information and Non Cash Investing and Financing Activities. 2. Prepare the Operating Activities Section using the "direct" method. Show

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

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Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net income of $40 million. Included in the income was interest expense of $2,800,000. The companys tax rate was 40%. Total assets were $470 million, current liabilities were $104,000,000, and $72,000,000 of the current liabilities are noninterest bearing. What are the invested capital and ROI for Macon?
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Asset turnover
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Ratio of fixed assets to long-term liabilities
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Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Return on total assets
Problem BPeter Senen Corporation provided the following account balances as of September 30, 2020: CashP112,000 Accumulated depreciationP 36,000Accounts Receivable64,000Accounts payable 40,000Finished Goods48,000Income tax payable9,000Work in process 36,000 Share Capital500,000Raw materials 52,000 Retained Earnings207,000Property and Equipment480,000The following transactions occurred during October:1. Materials purchased on account, P150,0002. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000.3. Payroll for the month of October 2020 consisted of the following (also paid during the month):Direct labor P62,000Administrative salariesP16,000Indirect Labor 20,000Sales salaries 30,000Payroll deductions were as follows:Withholding taxes P19,800Phil health contributions P2,000SSS contributions 7,100HDMF contributions 2,0004. Employer contributions for the month were accrued:FactorySellingAdministrativeSSS contributionsP5,700P2,000P1,100Philhealth…
THE ATHLETIC ATTICIncome StatementFor the Year Ended December 31, 2024Net sales $8,900,000Cost of goods sold 5,450,000Gross profit 3,450,000Expenses: Operating expenses $1,600,000 Depreciation expense 210,000 Interest expense 50,000 Income tax expense 360,000 Total expenses 2,220,000Net income $1,230,000 THE ATHLETIC ATTICBalance SheetsDecember 31 2024 2023Assets Current assets: Cash $164,000 Accounts receivable 790,000 Inventory 1,405,000 Supplies 110,000Long-term assets: Equipment 1,150,000 Less: Accumulated depreciation (420,000) Total assets $3,199,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $115,000 Interest payable 0 Income tax payable 40,000 Long-term liabilities: Notes payable 600,000 Stockholders' equity: Common stock 700,000…
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Uniliver INC Comparative Income Statement For the Years Ended December 31, 2019 and 2020 2019 2020 Sales $500,000 $350,000 Less: Cost of Goods Sold 200,000 140,000 Gross Profit on Sales $300,000 $210,000 Less: Operating Expenses 260,000 243,000 Less: Loss on Sale of Marketable Securities - 1,000 Net Income (Loss) $40,000 $(34,000) Uniliver INC Comparative Balance Sheets December 31, 2019 2020 Assets Cash and Cash Equivalents $10,000 $60,000 Marketable Securities 20,000 5,000 Accounts Receivable 40,000 23,000 Inventory 120,000 122,000 Plant and Equipment (Net of Accumulated Depreciation) 300,000 285,000 Totals $490,000 $495,000 Liabilities & Stockholders' Equity Accounts Payable $50,000 $73,000 Accrued Expenses Payable 17,000 14,000 Note Payable 245,000 253,000…
61. Lala Company reported the following information in 2021:· Sales revenue- P500,000· Cost of Goods Sold- P350,000· Operating Expenses- P55,000· Unrealized translation gain- P20,000· Cash dividends received on investment in equity securities- P2,000Ignore income tax, for 2021, Lala Company would report total comprehensive income before tax of? CHOICES: P115,000 P20,000 P117,000 P97,000