Pharoah, Inc. has the following data for the year ended December 31, 2020: Net sales $273,000 Loss on disposal of discontinued operation 20,900 Cost of goods sold 165,400 Interest expense 4,600 Selling expenses 15,900 Administrative expenses 37,410 Shares of capital stock outstanding, 10,000 Tax rate of 30% on all items Prepare a multiple-step income statement for Pharoah, Inc. for the year ended December 31, 2020. (Round earnings per share answers to 2 decimal places, e.g. 5.25.)
Q: Starr Co. had sales revenue of $540,000 in 2020. Other items recorded during the year were: Cost…
A: Introduction Income statement is a summary of incomes and expenses to ascertain net profit.. Single…
Q: Dex Lukes at December 31, 2020, the end of its first year of operations has the following details:…
A: Income from operations = Sales revenue - Cost of goods sold - Selling and administrative expenses
Q: (a) Income from operation, (b) net income, (c) net income attributed to controlling shareholders,
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: The profit or loss section of the statement of comprehensive income of Reek Company for the year…
A: Statement of cash flows is one of the important financial statement of the business, which shows all…
Q: For its fiscal year ending October 31, 2022, Crane Corporation reports the following partial data.…
A: Income Statement - This statement shows the income earned and loss incurred by the organization in…
Q: The preliminary 2021 income statement of Alexian Systems, Inc., is presented below: ALEXIAN SYSTEMS,…
A: Income Statement: An income statement is a financial statement that details the revenue and expenses…
Q: In its income statement for the year ended December 31, 2022, Novak Corp. reported the following…
A: Multi Step Income statement is a form of financial statement which shows all incomes and all…
Q: Prepare a multiple-step income statement for the Reed Company for 2021, showing 2020 information in…
A: Given:
Q: Ayayai Ltd. had the following 2020 income statement data: Sales $205,600 Cost of goods sold 119,400…
A: The Cash Flow statement shows the flows of cash and cash equivalent during the period under report.…
Q: Selected information about income statement accounts for the Reed Company is presented below (the…
A: The main purpose of the income statement is to show how much profit or loss an organization…
Q: The following information is related to Dickinson Company for the year ended December 31, 2020.…
A:
Q: Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2020. Cash…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: An abbreviated set of financial statements for Caraba's Company for 2020 and 2019 is shown below:…
A: The cash flow statement is an essential part of the financial statements of the organization. It is…
Q: Presented below are the condensed income statement of Ku Co. for the years ended December 31, 2020…
A: Income statement is a statement which records the revenue and expenses of an undertaking for a…
Q: Selected information about income statement accounts for the Reed Company is presented below (the…
A: A statement that shows the profitability and the performance of the company is known as the income…
Q: Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales…
A: a.
Q: In its income statement for the year ended December 31, 2019, Cullumber Company reported the…
A: Multi Step Income statement of the busines shows all income and expenses of the business and at the…
Q: Presented below is information related to Viel Company at December 31, 2020, the end of its first…
A: a. Particulars Amount Sales revenue $310,000 Less: Cost of goods sold (140,000) Gross…
Q: The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company…
A: Statement of cash flows is one of the financial statement which shows all cash inflows and cash…
Q: ABC Corporation's accounting records include the following items, listed in no particular order, at…
A: Question is based on the concept of income statement
Q: Presented below is information related to Sheffield Corp. for the year 2020. Net sales $1,456,000…
A: An income statement is a report prepared and maintained by the business in order to understand the…
Q: Presented below is information related to Whispering Company at December 31, 2020, the end o Sales…
A: Income from operations: =Sales - Cost of goods sold - Selling & administrative expenses Net…
Q: The Income Statement for the year ended 31st December, 2020 under the method of Historical Cost…
A: Income statements for year ended 31.12.2020 under historical cost accounting of Sohar LLC is Cost of…
Q: For its fiscal year ending October 31, 2022, Sarasota Corp. reports the following partial data shown…
A: The profitability status of the company can be arrived from the income statement prepared by the…
Q: Allied Construction and Axis Construction reported the following information in their annual…
A: Financial ratios are computed to get detailed information related to the company so that decisions…
Q: Presented below is information related to Bramble Corp. for the year 2020. Net sales $1,378,000…
A: Income statement which categorized income and expenses into operating and non-operating expenses is…
Q: Ramsec Corp at December 31, 2020, the end of its first year of operations has the following details:…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Zumbrunn Company's income statement contained the following condensed information. ZUMBRUNN CcOMPANY…
A: CFO stands for Cash flow from the operating activities which states the amount of money that the…
Q: Presented below is information related to Oriole Corp., for the year 2020. Net sales $2,340,000 Cost…
A: Income statement is one the financial statements which is used for the purpose of measuring the…
Q: Presented below is information related to Crane Company at December 31, 2020, the end of its first…
A: Multi-step Income Statement: A multi-step income statement is an income statement that segregates…
Q: Presented below is information related to Sheridan Corp. for the year 2020. Net sales $1,196,000…
A: Multiple-step income statement: It is a detailed statement that provide the net income of the…
Q: Shaquille Corporation has operating income of $1.7 million, a loss on write-down of inventory of…
A: Given information is: Shaquille Corporation has operating income of $1.7 million, a loss on…
Q: Presented below is information related to Sheridan Corp. for the year 2020. Net sales $ 1,196,000…
A: Retained earning means amount of profit remain after all the adjustment of expense and adjustments.…
Q: BCD Company had sales Revenue of $500,000 for the year 2019. Its cost of goods sold was $240,000,…
A: Income statement: All revenues and expenses of the company generated or incurred for the period are…
Q: The following Income Statement information has been obtained from the books of Unlimited Liquors…
A: A discontinued segment is component of organization which can be either disposed off or can be…
Q: An entity reported the following information for the year ended December 31, 2020:
A: Solution: In simple terms, net income is the income that comes after deducting all expenses from the…
Q: An entity reported the following information for the year ended December 31, 2020: Sales 7,750,000…
A: The total amount of money generated by an individual or firm in a certain period of time, minus…
Q: Selected information about income statement accounts for the Reed Company is presented below (the…
A:
Q: The following Income Statement information has been obtained from the books of Unlimited Liquors…
A: An income statement is one of the important statements in a company's financial statements that…
Q: An entity reported the following information for the year ended December 31, 2020: Sales 7,750,000…
A: In simple terms, net income is the income that comes after deducting all expenses from the total…
Q: The following comprehensive assessment is based on a continuing case study of Insignia Corporation…
A: Formula to compute retuen on equity using Du Point Identity is as follows: Return on equity =Profit…
Q: The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company…
A: Statement of cash flows is one of the financial statement which shows all cash inflows and cash…
Q: Dela Rosa Company Company The income statement for the year ended December 31, 2020, for Dela Rosa…
A: The Income Statement and account balances are given for the year ended 31st December 2X20.
Q: For its fiscal year ending October 31, 2020, Henderson Corporation reports the following partial…
A: According to Financial Accounting Standards Board (FASB) notification, a statement of comprehensive…
Q: The following Income Statement information has been obtained from the books of Unlimited Liquors…
A: The net income is calculated as difference between revenue and expenses of the business.
Q: Presented below is information related to Blossom Company at December 31, 2020, the end of its first…
A: Income from operations or operating income or earnings before income and taxes refers to the total…
Q: An entity reported the following information for the year ended December 31, 2020: Sales 7,750,000…
A: An entity reported the following information for year ended 31.12.2020. Sales = 7750000 Cost of…
Q: Presented below is information related to Viel Company at December 31, 2020, the end of its first…
A: a.
Pharoah, Inc. has the following data for the year ended December 31, 2020:
| Net sales | $273,000 | ||
| Loss on disposal of discontinued operation | 20,900 | ||
| Cost of goods sold | 165,400 | ||
| Interest expense | 4,600 | ||
| Selling expenses | 15,900 | ||
| Administrative expenses | 37,410 | ||
| Shares of capital stock outstanding, 10,000 | |||
| Tax rate of 30% on all items |
Prepare a multiple-step income statement for Pharoah, Inc. for the year ended December 31, 2020. (Round earnings per share answers to 2 decimal places, e.g. 5.25.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the beginning of the current year, Bloom changed its inventory method from LIFO to FIFO, and the cumulative effect (net of taxes) of this change was 28,000. In addition, Bloom earned net income of 150,000 and paid dividends of 30,000 in the current year. Prepare Blooms retained earnings statement for the current year.
- 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. $_____________Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.
- Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of $134,800, selling expenses of $38,310, general and administrative expenses of $36,990, interest expense of $580, and income tax expense of $13,920. Hollys stockholders equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at the end of the year. Required Compute Hollys profit margin. What other information would you need in order to comment on whether this ratio is favorable?For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the beginning of the year, its retained earnings had a balance of 95,000. During the year, Vidalia paid 11,000 dividends to shareholders. Its contributed capital was 56,000 at the beginning of the year, and it did not issue any new stock during the year. Vidalias assets total 237,500 on December 31 of the current year. What are Vidalias total liabilities on December 31 of the current year?
- Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. Open the file CASHFLOW from the website for this book at cengagebrain.com. First, enter the formulas. Then, complete the worksheet in the manner described next. According to the problem, cash increased from 39,600 to 67,210 during the year. This is a 27,610 increase. To record this increase on the worksheet, move to row 17. Since this is the first account you are analyzing, enter the letter a in column C. Then enter 27610 in column D (a debit since cash increased). This brings the year-end balance (column G) to 67,210, its proper balance. Now move to the bottom part of the statement where you see the categories Operating Activities, Investing Activities, and so on. The credit side of the entry has to be entered here. The proper space for this cash entry is on row 59. Enter the letter a in cell E59 and 27610 in cell F59. Notice the totals at the bottom of the page (row 60) now agree. The next account balance that changed is accounts receivable. It increased by 9,035. To enter this change on the worksheet, enter the letter b in cell C18 and 9035 in cell D18 (again, a debit since accounts receivable increased). This brings the year-end balance in column G to 121,250, its proper balance. The change in accounts receivable balance is an operating activity adjustment (as explained in your textbook). Enter the credit side of this entry in cells E34 and F34, and enter the explanation Increase in accounts receivable in cell A34. Note: Your textbook probably shows Net income as the first item under Operating Activities. We will get to that later. The sequence in which you enter items on this worksheet is not important. All other balance sheet accounts must be analyzed in the same manner, placing appropriate debit or credit entries in the top part of the worksheet to obtain the proper balances in column G, and then entering the second side of the entry in the appropriate row on the bottom part of the worksheet. You should use letter references to identify all entries. Also, you must enter a description of the entry in column A under the appropriate activity category. Although a sequence of analyzing the balance sheet from top to bottom is suggested here, this order is not necessary. As mentioned earlier, your textbook may specify a different sequence. Also, note that some accounts may have both debit and credit adjustments to them. The worksheet is not a substitute for a statement of cash flows, but it does provide you with all the numbers you need to properly prepare one. You will be done with your analysis when: a. The individual account balances at December 31, 2013, as shown on the worksheet (column G) equal those shown in the given problem data. b. The transaction column totals are equal (cells D60 and F60). c. The sum of the operating, investing, and financing activities (cell G59) equals the change in cash (cell D59 or F59). When you are finished, enter your name in cell A1. Save your completed file as CASHFLOW2. Print the worksheet when done. Also print your formulas. Check figure: Total credits at 12/31/2013 (cell G31), 860,460.The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. You have been asked to prepare a statement of cash flows for Prime Sports Gear for 2013. Review the worksheet called CASHFLOW that has been provided to assist you in preparing the statement. The worksheet has been designed so that as you make entries in columns D and F, column G will be automatically updated. For example, FORMULA1 should be entered as =B17+D17F17. Columns C and E are to be used to enter letter references for each of the debit and credit entries on the worksheet.
