Highland Industries Inc. makes investments in avaialable-for-sale securities. Selected income statement items for the years ended December 321, Year 2 and 3, plus selected items from comparative balance sheets, are as follows. There were no dividends. Determine the missing lettered items. Income StatementFor the Year Ended December 31,The income stateme$299,700Income from operationsGain on sale of investments17,800(72,500)$245,000Unrealized loss on trading investmentsNet incomea. Determine the December 31, Year 2, Retained Earnings balance.EX 15-19 Missing statement items, available-for-sale securitiesHighland Industries Inc. makes investments in available-for-sale securities Salstatement items for the years ended December 31, Year 2 and Year 3, plus celefrom comparative balance sheets, are as follows:Highland Industries Inc.Selected Income Statement ItemsFor the Years Ended December 31, Year 2 and Year 3Year 2Year 3Operating incomeGain (loss) from sale of investmentsg.o$(12,000)a.tor $7,500b.Net income (loss)(21,000)Highland Industries Inc.Selected Balance Sheet ItemsDecember 31, Year 1, Year 2, and Year 3Dec. 31, Year 1 Dec. 31, Year 2 DeAssetsAvailable-for-sale investments, at cost$ 90,000$ 86,000Valuation allowance for available-for-sale investments12,000(11,000)Available-for-sale investments, at fair valuee.Stockholders' EquityUnrealized gain (loss) on available-for-sale investmentsRetained earningsd.f.$175,400$220,000There were no dividends.Determine the missing lettered items.EX 15-20 Fair value journal entries, available-for-sale investmentsThe investments of Steelers Inc. include a single investment: 33,100 sharescommon stock purchased on September 12, Year 1, for $13 per share includingmission. These shares were classified as available-for-sale securities. As of th.Year 1, balance sheet date, the share price declined to $11 per share.a. Journalize the entries to acquire the investment on September 12 andjustment to fair value on December 31, Year 1.b. How is the unrealized gain or loss for available-for-sale investments cfinancial statements?

b=Retained Earning of Year 2-Retained Earning of Year 1=$220,000-$175,400=$44,600 a=Net Income of…

Highland Industries Inc. makes investments in avaialable-for-sale securities. Selected income statement items for the years ended December 321, Year 2 and 3, plus selected items from comparative balance sheets, are as follows. There were no dividends. Determine the missing lettered items.

Highland Industries Inc. makes investments in avaialable-for-sale securities. Selected income statement items for the years ended December 321, Year 2 and 3, plus selected items from comparative balance sheets, are as follows. There were no dividends. Determine the missing lettered items.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The current year financial statements for two competitors are presented below. Please analyze their financials. Note: if a ratio cannot be solved given the data provided, please leave it blank. There are a few ratios that cannot be solved given the information provided. Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15 %) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year Profitability ratios: 1. 2. 3. 4. 5. 6. Ratio 7. 8. 9. 10. Return on equity Return on assets Gross profit percentage Net profit margin Earnings per share Quality of income Asset turnover ratios: Total asset turnover Fixed…
12. The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATIONIncome StatementFor the Year Ended December 31, 2021 Revenues and gains: Sales revenue $ 790,000 Interest revenue 52,000 Gain on sale of investments 99,000 Total revenues and gains 941,000 Expenses and losses: Cost of goods sold $ 425,000 Selling expense 79,000 Administrative expense 99,000 Interest expense 36,000 Restructuring costs 75,000 Income tax expense 56,750 Total expenses and losses 770,750 Net Income $ 170,250 Earnings per share $ 1.70 Required:Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
The following accounts and corresponding balances were drawn from Dexter Company's Year 2 and Year 1 year-end balance sheets. Account Title Bonds payable Common stock Year 2 $216,800 375,100 Year 1 $300,200 283,500 Other information drawn from the accounting records: 1. Dividends paid during the period amounted to $43,500. 2. There were no bond liabilities issued during the period. Required a. Compute the amount of cash flow associated with the repayment of bond liabilities. b. Compute the amount of cash flow associated with the issue of common stock. c. Prepare the financing activities section of the statement of cash flows. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the amount of cash flow associated with the repayment of bond liabilities. Cash flow for the repayment of bond liabilities 13
[The following information applies to the questions displayed below.] Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year’s financial statements: EndingBalance BeginningBalance Cash $ 49,000 $ 44,200 Accounts receivable $ 92,000 $ 68,700 Inventory $ 76,300 $ 92,000 Current assets $ 217,300 $ 204,900 Total assets $ 801,000 $ 875,400 Current liabilities $ 85,500 $ 90,000 Total liabilities $ 206,000 $ 185,400 Common stock, $1 par value $ 165,000 $ 165,000 Total stockholders’ equity $ 595,000 $ 690,000 Total liabilities and stockholders’ equity $ 801,000 $ 875,400 This Year Sales (all on account) $ 1,095,000 Cost of goods sold $ 635,100 Gross margin $ 459,900 Net operating income $ 313,875 Interest expense $ 15,500 Net income $ 208,862 2. What is the…
earnings. Cash Accounts Receivable (net) Inventory Investments Net income Increase (Decrease) $69,570 53,800 $ 130,500 (47,390) Accounts Payable Bonds Payable Common Stock Paid-In Capital in Excess of Par-Common Stock Compute the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $26,900 which was paid in the current year. Increase (Decrease) $(51,240) 83,080 131,900 15,920
Information from the Balance Sheet and Statement of Income are given below for Bramble Inc., a private company reporting under ASPE, for the year ended December 31. Comparative Balance Sheet Cash Accounts receivable Inventory Investments in land Property, plant, and equipment Accumulated depreciation Accounts payable Accrued expenses payable Bonds payable Common shares Retained earnings Retained earnings Revenues Sales Expenses 2021 $78,110 Profit 90,940 123,440 86.540 286,640 (50,060) $615,610 Gain on disposal of equipment Additional Informati $54,140 13,140 140,000 250,000 158,330 Cost of goods sold Depreciation expense Operating expenses Income tax expense Interest expense 2020 $47,350 37,350 103,750 108,350 202,200 (40,200) $458,800 $49,850 19,250 76,000 207,000 106,700 158,330 $615,610 $ 96,250 57,300 15,470 38,000 2,950 106,700 $458,800 $292,500 8,350 300,850 209,970 $ 90,880
Golden Corporation declared and paid $4,600 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Required: 1. Complete the horizontal analyses for each item in Golden Corporation's comparative financial statements. TIP: Calculate the increase (decrease) by subtracting the previous year from the current year. Calculate the percentage by dividing the amount of increase (decrease) by the previous-year balance. (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.) 2-a. Use the horizontal (trend) analyses to identify the accounts where a large percentage change is accompanied by a small dollar change. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) 2-b. Use the horizontal (trend) analyses to identify the accounts…
E2.8 (LO 2) (Calculate ratios and evaluate profitability.) The following informat Saputo Inc. for the year ended March 31 (in millions, except share price): Income available for common shareholders Weighted average number of common shares Share price 2021 $625.6 409.8 $37.79 2020 $582.8 400.3 $33.84 Instructions a. Calculate the basic earnings per share and price-earnings ratio for each year. b. Based on your calculations above, how did the company's profitability change from 2020 to 2021? c. When income rose, did the share price increase? How does this affect the price-earnings ratio? d. Do you think investors are more or less optimistic about the company's profitability in the future? OC €
[The following information applies to the questions displayed below.] Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year’s financial statements: EndingBalance BeginningBalance Cash $ 49,000 $ 44,200 Accounts receivable $ 92,000 $ 68,700 Inventory $ 76,300 $ 92,000 Current assets $ 217,300 $ 204,900 Total assets $ 801,000 $ 875,400 Current liabilities $ 85,500 $ 90,000 Total liabilities $ 206,000 $ 185,400 Common stock, $1 par value $ 165,000 $ 165,000 Total stockholders’ equity $ 595,000 $ 690,000 Total liabilities and stockholders’ equity $ 801,000 $ 875,400 This Year Sales (all on account) $ 1,095,000 Cost of goods sold $ 635,100 Gross margin $ 459,900 Net operating income $ 313,875 Interest expense $ 15,500 Net income $ 208,862 5. What is the return…
Information from the balance sheet and income statement is given below for Bridgeport Inc., a private company reporting under ASPE, for the year ended December 31. Comparative Balance Sheet Cash Accounts receivable Inventory Investments in land Property, plant, and equipment Accumulated depreciation Accounts payable Accrued expenses payable Bonds payable Common shares Retained earnings Revenues Sales Gain on disposal of equipment Expenses Cost of goods sold Depreciation expense Operating expenses Income tax expense Interest expense Profit for the year 3. 2024 $ 60,255 59,020 79,235 Adjustments to reconcile profit to 54,925 188,500 (32,175) $409,760 $34,255 7,865 91,000 162,500 114,140 $409,760 $64,650 38,155 9,535 25,350 1,911 2023 くくくくくく $30,710 24,050 66,725 < < < < < < < < < 69,550 133,250 (26,000) $298,285 $31,380 12,240 45,500 130,000 79,165 $298,285 Additional information: 1. Investments in land were sold at cost during 2024. 2. Equipment costing $36,400 was sold for $10,110,…
The following accounts and corresponding balances were drawn from Dexter Company’s Year 2 and Year 1 year-end balance sheets. Account Title Year 2 Year 1 Bonds payable $212,100 $300,800 Common stock 373,200 275,300 Other information drawn from the accounting records: Dividends paid during the period amounted to $42,100. There were no bond liabilities issued during the period. Requireda. Compute the amount of cash flow associated with the repayment of bond liabilities.b. Compute the amount of cash flow associated with the issue of common stock.c. Prepare the financing activities section of the statement of cash flows.
Presented below are selected ledger accounts of Tamarisk Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% Your answer is correct. Compute net income for 2020. Net income tA $ 96800 $55,000 110,000 88,000 594,000 231,000 22,000 16,500 44,000 33,000 99,000