Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 11, Problem 11E
Summary Introduction
Introduction:Retained earnings refers to the amount of business profits which is not distributed. It is kept in the business for future projects, dividend payments and other purposes.
To prepare:The statement of retained earnings for the year 2016.
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Accounting
The following information is available for Sage Hill Inc. for the year ended
December 31, 2017:
Loss on discontinued
operations
Rent revenue
Income tax applicable
to continuing
operations
Administrative
expenses
Loss on write-down of
inventory
Gain on sale of
equipment
Unrealized gain on
available-for-sale
securities
$68,000
95,000
314,000
509,000
38,000
39,000
33,000
Retained earnings
January 1, 2017
Selling expenses
Income tax applicable to
loss on discontinued
operations
Cost of goods sold
Sales revenue
Cash dividends declared
Interest expense
200,000 shares were outstanding during all of 2017.
$1,420,000
867,000
24,000
1,672,000
3,760,000
211,000
57,000
Simple Income Statement
The following are selected items derived from Dibb Company's adjusted trial balance on December 31, 2016:
Loss on sale of land
$5,100
Cost of goods sold $198,000
Sales (net)
$265,200
Operating expenses $47,700
12,000 shares of common stock were outstanding the entire year.
Required:
Assuming a 30% income tax rate on all items of income, prepare a 2016 income statement for Dibb's Company using a multiple-step format. Round earnings per share computations to two decimal places.
Forecast an Income Statement
Following is the income statement for Medtronic PLC for the year ended April 29, 2016.
Consolidated Statements of Income
Apr. 29, 2016
Net sales
$29,721
Costs and expenses
Cost of products sold
9,214
Research and development expense
2,224
Selling, general, and administrative expense
9,469
Special charges (gains), net
70
Restructuring charges, net
290
Certain litigation charges, net
26
Acquisition-related items
283
Amortization of intangible assets
1,931
Other expense, net
107
Operating profit
6,107
Interest expense, net
955
Income from operations before income taxes
5,152
Provision for income taxes
979
Net income
$4,173
Use the following assumptions to prepare a forecast of the company's income statement for FY2017.
Net sales increase
18%
Cost of products sold
31.7% of net sales
Research and development expense
7.7% of net sales
Selling, general, and administrative expense
32.8% of net sales…
Chapter 11 Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. 11 - Prob. 1DQCh. 11 - How are organization expenses reported?Ch. 11 - Prob. 3DQCh. 11 - What is the difference between authorized shares...Ch. 11 - Prob. 5DQCh. 11 - Prob. 6DQCh. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Prob. 10DQ
Ch. 11 - Prob. 11DQCh. 11 - Prob. 12DQCh. 11 - What is the didfference between a stock dividend...Ch. 11 - Prob. 14DQCh. 11 - Prob. 15DQCh. 11 - Prob. 16DQCh. 11 - Prob. 17DQCh. 11 - Prob. 18DQCh. 11 - Prob. 19DQCh. 11 - Prob. 20DQCh. 11 - Prob. 21DQCh. 11 - Prob. 22DQCh. 11 - Prob. 1QSCh. 11 - Prob. 2QSCh. 11 - Prob. 3QSCh. 11 - Prob. 4QSCh. 11 - Prob. 5QSCh. 11 - Prob. 6QSCh. 11 - Prob. 7QSCh. 11 - Prob. 8QSCh. 11 - Prob. 9QSCh. 11 - Prob. 10QSCh. 11 - Prob. 11QSCh. 11 - Prob. 12QSCh. 11 - Prob. 13QSCh. 11 - Prob. 14QSCh. 11 - Prob. 15QSCh. 11 - Prob. 16QSCh. 11 - Dividend yield A3 Foxburo Company expects to pay a...Ch. 11 - Prob. 18QSCh. 11 - Prob. 19QSCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Prob. 4ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - York’s outstanding stock consists of 80,000 shares...Ch. 11 - Use the data in Exercise 118 to determine the...Ch. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 1PSACh. 11 - Prob. 2PSACh. 11 - Prob. 3PSACh. 11 - Prob. 4PSACh. 11 - Prob. 5PSACh. 11 - Prob. 1PSBCh. 11 - Prob. 2PSBCh. 11 - Prob. 3PSBCh. 11 - Prob. 4PSBCh. 11 - Refer to Apples financial statements in Appendix A...Ch. 11 - Prob. 2BTNCh. 11 - Harriet Moore is an accountant for New World...
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