Presented below is information related to Watt Company in its first year of operation. The following information is provided at December 31, 2021, the end of its first year. Sales revenue 450,000 Cost of goods sold 210,000 Selling and administrative expenses 75,000 Gain on sale of plant assets 45,000 Unrealized gain on available-for-sale financial assets 15,000 Financial costs 10,000 Loss on discontinued operations 20,000 Allocation to non-controlling interest 60,000 Dividends declared and paid 8,000 Compute the following (a) income from operations, (b) net income, (c) net income attributable to Watt Company shareholders, (d) comprehensive income, and (e) retained earnings balance at December 31, 2021.

Cornerstones of Cost Management (Cornerstones Series)
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Chapter2: Basic Cost Management Concepts
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Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Presented below is information related to Watt Company in its first year of operation. The following information is provided at December 31, 2021, the end of its first year.
Sales revenue 450,000
Cost of goods sold 210,000
Selling and administrative expenses 75,000
Gain on sale of plant assets 45,000
Unrealized gain on available-for-sale financial assets 15,000
Financial costs 10,000
Loss on discontinued operations 20,000
Allocation to non-controlling interest 60,000
Dividends declared and paid 8,000

Compute the following (a) income from operations, (b) net income, (c) net income attributable to Watt Company shareholders, (d) comprehensive income, and (e) retained earnings balance at December 31, 2021.

 

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