The changes in account balances of Smile Co. during 2020 are as follows: Assets: P133,500 increase Liabilities: P40,500 decrease Ordinary share capital: P90,000 increase Share premium: P9,000 increase. Assuming there are no changes in retained earnings except for net income and a dividend payment of P19,500, how much is the net income (net loss) for 2020?
Q: The changes in account balances of ENIGMA Co. during 2020 are as follows: Assets: P133,500 increase…
A: Assets: P133,500 increase Liabilities: P40,500 decrease Ordinary share capital: P90,000 increase…
Q: During 2019, Minh Corporation had a net income of $144,000. Ordinary share capital was $200,000…
A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…
Q: Presented below is information related to Sheridan Corp. for the year 2020. The information is…
A: Income Statement - It is a financial statement which shows the company's income and expenses over a…
Q: The company is subject to 30% income tax. How much is the net income (net loss) during 2020?
A: 1. Assets: P133,500 increase Liabilities: P40,500 decrease Ordinary share capital: P90,000 increase…
Q: The 2020 income statement of Blossom Corporation showed net income of $1,271,000, which included a…
A: Earnings per share (EPS) which states that how much money which company could make for each and…
Q: The following information pertains to BT21 Co. for the year. · Net assets, Jan.1, 2021-…
A: Solution: Profit (Loss) = Net asset on Dec 31, 2021 - Net asset Jan 1, 2021 + Dividend declared -…
Q: The balance in the retained earnings of HAWKEYE Corporation on December 31, 2020 and 2021…
A: Ending retained earnings = Beginning retained earnings + Net income during the year - Stock dividend…
Q: Blue Corporation has retained earnings of $689,900 at January 1, 2020. Net income during 2020 was…
A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but…
Q: Webster and Company had a balance in their retained earnings account at the end of 2020 in the…
A: Formula: Addition to Retained earnings = Net income - Dividends.
Q: ABC Corporation reported a net loss of $(115,000) for the year 2020. Over the course of that year,…
A: Cash flow statement is used to evaluate the cash flows from various activities during a given period…
Q: V Company provided the following information for the year ended December 31,2019: 2,000,000…
A: Retained Earnings: The accumulated net earnings or profits of a corporation after dividend payments…
Q: The following is the excerpt of financial information of Dreamies Corporation on December 31, 2022:…
A: Solution:- Return on Equity (ROE) means the percentage of net income earned on the shareholder's…
Q: RED Corporation's account balances during 2021 showed the following changes, all increases: Assets…
A: Solution Concept Using accounting equation Change in assets =change in liabilities +…
Q: The balance in the retained earnings at December 31, 2019 and 2020 respectively are ₱720,000 and…
A: Cash dividends are the excess of profit that is distributed to the shareholders (owners) in the form…
Q: on january 1 2020 carla vista corporation had retained earnings of 549000 during the year carla…
A: Retained earnings refer to the accumulated portion of the profits of business that is not…
Q: The changes in account balances of ENIGMA Co. during 2020 are as follows: Assets: P133,500 increase…
A: Liabilities: It is the amount the company is liable to payoff in the accounting life of the company.…
Q: ARR Corporation's account balances during 2019 showed the following changes, all increases: Assets -…
A: The income statement is prepared by the business organizations so as to know how much amount of…
Q: Poh Inc., corporation, has the following pertinent information happened during year 2022 P 1,570,000…
A: Statement of Cash Flows using indirect method:
Q: ABC company's total equity for 2019 amounted to P1,750,000. There was a 5% and a 15% increase in…
A: Total equity for 2020 = Total equity for 2019 + Total equity for 2019 x 5% = 1750000 + 1750000*5% =…
Q: Fashion, Inc. had a Retained Earmings balance of $19.000 at December 31, 2021. The company had an…
A: Formulas: Beginning Retained earnings balance + Net Income – Dividends = Ending retained earnings…
Q: Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020…
A: "Since you have posted multiple questions, we will solve the first question for you. To get the…
Q: Fisafolia Corporation has gross income from operations of $426,600 and operating expenses of…
A: Dividend Dividend is considered to be one of the important part in the investment of assets to the…
Q: Jaffers Corporation has a current ratio (defined as current assets dividend by current liabilities)…
A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…
Q: Global Inc. provided the following changes on December 31, 2020. Current assets P 3,000,000…
A: Change in assets = Change in liabilities + Change in stockholders' equity Change in assets =…
Q: NOTE: SHOW A DETAILED SOLUTION. The summarised financial statements of LL Limited are as…
A: Cash Flow Statement - Cash Flow Statement is the statement that shows the cash inflow and outflow of…
Q: .) Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income…
A: The net income of the company can be calculated by deducting all the expenses and costs from revenue…
Q: Jason Woo Corporation began operations on January 1, 2017. During its first 3 years of operations,…
A: Prepare retained earnings statement for Jason Woo Corporation for the year ended December 31, 2020.
Q: Refer to the data below. Retained earnings, December 31, 2020 $ 416,840 Net decrease…
A:
Q: Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020…
A: Retained earnings:- Retained earnings are defined as the portion of the profits left with the firm…
Q: The changes in account balances for Allen Inc. for 2021 are as follows: Assets 260,000 debit Common…
A:
Q: When comparing the statement of financial position of ARB Company for the years 2020 and 2021, it…
A: owners’ equity = Total assets - total liabilities
Q: Sunland Co. reports the following information for 2020: sales revenue $753,100, cost of goods sold…
A: The statement of stockholders' equity represents the changes that occurred in the equity held by the…
Q: The following trial balance of Robertson Co. at December 31, 2020 has been adjusted except for…
A: Lets start with basic understanding of term current asset. Current asset are assets which are…
Q: V Company provided the following information for the year ended December 31,2019: Total assets Share…
A: Retained earnings: These are the accumulated earnings of the company. These earnings were…
Q: At January 1, 2022, Bonita Industries reported Retained Earnings of $308000. During 2022, Bonita had…
A: Retained earnings: Retained earnings refer to the portion of the net income, which is retained by…
Q: how much is the net income (net loss) for 2020?
A: Assets: P133,500 increase Liabilities: P40,500 decrease Ordinary share capital: P90,000 increase…
Q: qualitative characteristics of useful financial information
A: Qualitative characteristics of useful financial information include understandability, relevance,…
Q: Jungle’s net income/loss for 2024?
A: Accounting equation: Equity + liabilities = Assets Ordinary share capital + Share premium +…
Q: Calculate Facebook's addition to retained earnings if, in 2020, Facebook reported $634,000 in…
A: The remaining amount from the revenues that a company has after the deductions of the expenses,…
Q: Use the following information to complete the December 31, 2019, Statement of Financial Position of…
A: Balance sheet means where all assets , liabilities and capital is shown. Balance sheet always match…
Q: Use the following information to complete the December 31, 2019, Statement of Financial Position of…
A: Balance sheet means where all assets , liabilities and capital is shown. Balance sheet always match…
Q: The shareholders’ equity of Chernasky Company at the beginning and end of 2020 totalled $15,000 and…
A:
Q: In 2020, Packer Corporation reports gross profits of $200,000, deductible expenses of $30,000, and a…
A: Capital losses are carried forward until it is not offset with the capital gains. Given in the…
Q: Changes in the statement of financial position account balances for the Navaro Company during 2026…
A: Account Amount Cash 95,500 Accounts receivable, net 92,000 Inventory…
Q: TAARE ZAMEENPAR Company reported the following changes in the account balances for the current year,…
A: Net Income: The amount of money earned by a person or corporation after subtracting expenses,…
Q: Tamarisk Co. reports the following information for 2020: sales revenue $769,400, cost of goods sold…
A: Stockholder's Equity This is one of the important part in the preparation of final financial…
Q: Here are the 2018 and 2019 (incomplete) balance sheets for Newble Oil Corp. BALANCE SHEET AT END OF…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Palmar Corporation has total assets and total liabilities of $82,000 and $40,000, respectively, at…
A: As per accounting equation, Assets = Liabilities + Owner's Equity
Q: Presented below is X Corporation's selected data for 2020: Retained earnings January 1 ,2020…
A: Retained earnings account is shown on balance sheet under liabilities side. It is accumulated net…
Q: Paulson Company had the following on the dates indicated:12/31/18 12/31/17Total assetsTotal…
A: Basic Accounting Equation is: Shareholders Equity = Assets - Liabilities
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).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.Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. In addition, Reinhardt paid of dividends during 2019. On December 31, 2019, Reinhardt prepared closing entries. The net effect of the closing entries on retained earnings was a(n): a. decrease of $4,000. b. increase of $35,000. c. increase of $39,000. d. decrease of $87,000.
- Balance Sheet Calculations Cornerstone Development Companys balance sheet information at the end of 2019 and 2020 is provided in random order, as follows: Additional information: At the end of 2019, (a) the amount of long-term liabilities is twice the amount of current liabilities and (b) there are 2,900 shares of common stock outstanding. During 2020, the company (a) issued 100 shares of common stock for 25 per share, (b) earned net income of 20,600, and (c) paid dividends of 1 per share on the common stock outstanding at year-end. Required: Next Level Fill in the blanks lettered (a) through (p). All of the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)DIVIDENDS Brooks Sporting Inc. is prepared to report the following 2019 income statement (shown in thousands of dollars). Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 320,000 shares of common stock outstanding, and its stock trades at 37 per share. a. The company had a 25% dividend payout ratio in 2018. If Brooks wants to maintain this payout ratio in 2019, what will be its per-share dividend in 2019? b. If the company maintains this 25% payout ratio, what will be the current dividend yield on the companys stock? c. The company reported net income of 1.35 million in 2018. Assume that the number of shares outstanding has remained constant. What was the companys per-share dividend in 2018? d. As an alternative to maintaining the same dividend payout ratio. Brooks is considering maintaining the same per-share dividend in 2019 that it paid in 2018. If it chooses this policy, what will be the companys dividend payout ratio in 2019? e. Assume that the company is interested in dramatically expanding its operations and that this expansion will require significant amounts of capital. The company would like to avoid transactions costs involved in issuing new equity. Given this scenario, would it make more sense for the company to maintain a constant dividend payout ratio or to maintain the same per-share dividend? Explain.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.Rate of Change Analyses and Ratios Analyses The following are Cohen Companys comparative financial statements for 2020, 2019, and 2018: Additional information: Credit sales were 65% of net sales in 2019 and 60% in 2020. At the beginning of 2020, 400 shares of common stock were issued, the first sale of stock in several years. Cohen is concerned. Although it increased the dividends paid per share by 5% in 2020 and its 2020 net income is higher than 2019 net income, the market price of its common stock dropped from 22 per share at the beginning of 2020 to 21 per share at year-end. Required: 1. For 2019 and 2020, prepare rate of change analyses for the income statements and balance sheets of Cohen using a year-to-year approach. 2. For 2019 and 2020, compute the following ratios; (a) current, (b) inventory turnover, (c) receivables turnover, (d) net profit margin, (e) earnings per share, (f) return on total assets, (g) return on shareholders equity, and (h) debt-to-assets. 3. Next Level Based on your results, discuss the possible reasons for the decrease in the market price per share in 2020.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- Leverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?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. $_____________