menu
bartleby
search
close search
Hit Return to see all results
Subscribe
Sign in

Business
AccountingIntermediate Accounting: Reporting And Analysis3rd Edition

close solutoin list
Chapter 16, Problem 19P
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
Problem 1GI
Problem 2GI
Problem 3GI
Problem 4GI
Problem 5GI
Problem 6GI
Problem 7GI
Problem 8GI
Problem 9GI
Problem 10GI
Problem 11GI
Problem 12GI
Problem 13GI
Problem 14GI
Problem 15GI
Problem 16GI
Problem 17GI
Problem 18GI
Problem 19GI
Problem 20GI
Problem 21GI
Problem 22GI
Problem 23GI
Problem 1MC
Problem 2MC
Problem 3MC
Problem 4MC
Problem 5MC
Problem 6MC
Problem 7MC
Problem 8MC
Problem 9MC
Problem 10MC
Problem 1RE
Problem 2RE
Problem 3RE
Problem 4RE
Problem 5RE
Problem 6RE
Problem 7RE
Problem 8RE
Problem 9RE
Problem 10RE
Problem 11RE
Problem 12RE
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 21E
Problem 22E
Problem 23E
Problem 24E
Problem 25E
Problem 26E
Problem 27E
Problem 28E
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 12P
Problem 13P
Problem 14P
Problem 15P
Problem 16P
Problem 17P
Problem 18P
Problem 19P
Problem 20P
Problem 21P
Problem 22P
Problem 23P
Problem 24P
Problem 25P
Problem 26P
Problem 1C
Problem 2C
Problem 3C
Problem 4C
Problem 5C
Problem 6C
Problem 7C
Problem 9C
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
1 views

Anoka Company reported the following selected items in the shareholders’ equity section of its balance sheet on December 31, 2019, and 2020:

Chapter 16, Problem 19P, Anoka Company reported the following selected items in the shareholders equity section of its , example 1

In addition, it listed the following selected pretax items as a December 31, 2019 and 2020:

Chapter 16, Problem 19P, Anoka Company reported the following selected items in the shareholders equity section of its , example 2

The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for $25.75 and $32.20, respectively. The company is subject to a 30% income tax rate.

Required:

  1. 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anoka’s 2020 annual report.
  2. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?

1.

To determine

Prepare the comparative income statement for the year 2019 and 2020 and also provide the notes related to the income statement that would appear in the annual report of Company R.

Explanation

Retained earnings: Retained earnings are that portion of profits which are earned by a company but not distributed to stockholders in the form of dividends. These earnings are retained for various purposes like expansion activities, or funding any future plans.

Prepare the comparative income statement for Company A.

Company A
Comparative income statement
for the years ended December 31,2019 and 2020
Particulars2020 in $2019 in $
Sales140,000124,300
Cost of goods sold(80,000)(75,000)
Gross profit60,00049,300
Operating expenses(20,000)(18,000)
Income before discontinued operations40,00031,300
Income tax expense (30%)(12,000)(9,390)
Income before discontinued operations28,00021,910
Income from discounted operations (net of $1,800 income tax expense) 4,200
Loss from discounted operations (net of $2,700 income tax credit)(6,300)-
Net income21,70026,110
Basic earnings per share:  
      Income before extraordinary item2.922.79
      Discontinued operations 0.64
      Discontinued operations(0.75)-
       Net income2.173.43

(Table 1)

Notes to the financial statement:

Note A: for the purpose of comparative statement, retroactive recognition back to 2019 is given to the 20% stock dividend issued in 2020. The preferred dividend amount $3,500 [50,000×7%] must be deducted from the income before the discounted operations for the year 2019 and 2020. The net income of $24,500 and $18,400 for the year 2020 and 2019 after deduction of preferred dividend must be divided with the number of shares outstanding in the common stock 8,400 (2) shares for the year 2020 and 6,600 (1) shares for the year 2020. The earnings per share obtained for the income from operations for the year 2019 and 2020 will amount to $2.92 and $2.79. The basic earnings per share for the discounted operations of $ 0.64 is obtained by dividing $4,200 with 6,600 and the loss form the discontinued operations (0.75) is obtained by dividing $6,300 with 8,400 shares outstanding

2.

To determine

Calculate and compare the price/ earnings ratio for the 2019 and 2020.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution
arrow_back
Chapter 16,
Problem 18P
Chapter 16,
Problem 20P
arrow_forward

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 16 Solutions

Show all chapter solutions add
Ch-16 P-1GICh-16 P-2GICh-16 P-3GICh-16 P-4GICh-16 P-5GICh-16 P-6GICh-16 P-7GICh-16 P-8GICh-16 P-9GICh-16 P-10GI
Ch-16 P-11GICh-16 P-12GICh-16 P-13GICh-16 P-14GICh-16 P-15GICh-16 P-16GICh-16 P-17GICh-16 P-18GICh-16 P-19GICh-16 P-20GICh-16 P-21GICh-16 P-22GICh-16 P-23GICh-16 P-1MCCh-16 P-2MCCh-16 P-3MCCh-16 P-4MCCh-16 P-5MCCh-16 P-6MCCh-16 P-7MCCh-16 P-8MCCh-16 P-9MCCh-16 P-10MCCh-16 P-1RECh-16 P-2RECh-16 P-3RECh-16 P-4RECh-16 P-5RECh-16 P-6RECh-16 P-7RECh-16 P-8RECh-16 P-9RECh-16 P-10RECh-16 P-11RECh-16 P-12RECh-16 P-1ECh-16 P-2ECh-16 P-3ECh-16 P-4ECh-16 P-5ECh-16 P-6ECh-16 P-7ECh-16 P-8ECh-16 P-9ECh-16 P-10ECh-16 P-11ECh-16 P-12ECh-16 P-13ECh-16 P-14ECh-16 P-15ECh-16 P-16ECh-16 P-17ECh-16 P-18ECh-16 P-19ECh-16 P-20ECh-16 P-21ECh-16 P-22ECh-16 P-23ECh-16 P-24ECh-16 P-25ECh-16 P-26ECh-16 P-27ECh-16 P-28ECh-16 P-1PCh-16 P-2PCh-16 P-3PCh-16 P-4PCh-16 P-5PCh-16 P-6PCh-16 P-7PCh-16 P-8PCh-16 P-9PCh-16 P-10PCh-16 P-11PCh-16 P-12PCh-16 P-13PCh-16 P-14PCh-16 P-15PCh-16 P-16PCh-16 P-17PCh-16 P-18PCh-16 P-19PCh-16 P-20PCh-16 P-21PCh-16 P-22PCh-16 P-23PCh-16 P-24PCh-16 P-25PCh-16 P-26PCh-16 P-1CCh-16 P-2CCh-16 P-3CCh-16 P-4CCh-16 P-5CCh-16 P-6CCh-16 P-7CCh-16 P-9C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is lapping?

Accounting Information Systems

Financial data for Otto Company follow: a. Compute the ratio of cash to monthly cash expenses. b. Interpret t...

Financial Accounting

Entries for receipt and dishonor of note receivable Journalize the following transactions of Trapper Jons Produ...

Corporate Financial Accounting

Ethics in Action The controller of Tri Con Global Systems Inc. has developed a new costing system that traces t...

Financial And Managerial Accounting

Use the following spreadsheet for Yoders Cool Stuff for Checkpoint Exercises 1, 2, and 3. Prepare a multiple-st...

College Accounting, Chapters 1-27

Unit Cost, Valuing Goods Transferred Out and EWIP During April, the grinding department of Tranx Inc. completed...

Managerial Accounting: The Cornerstone of Business Decision-Making

Journal entry for asset purchase Prepare a journal entry for the purchase of office supplies on March 9 for 1,7...

Financial & Managerial Accounting

Internal rate of return method The internal rate of return method is used by King Bros. Construction Co. in ana...

Accounting

What steps are commonly included in a business continuity planning methodology?

Accounting Information Systems

What Are Your Social Values?79 A global environment requires that managers deal with people who hold many diffe...

Management, Loose-Leaf Version

What is the World Trade Organization (WTO) and how does it help foster multilateral trade? (Check the WTO Websi...

ECON MACRO

J.D. Power and Associates surveys new automobile owners to learn about the quality of recently purchased vehicl...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

At Fenway Park, home of the Boston Red Sox, seating is limited to about 38,000. Hence, the number of tickets is...

Principles of Economics (MindTap Course List)

List and briefly explain the three principles that describe how the economy as a whole works.

Principles of Microeconomics (MindTap Course List)

(Alternative Measures of Profit) Calculate the accounting profit or loss as well as the economic profit or loss...

ECON MICRO

Identify and understand the psychological factors that affect consumer buying decisions

MKTG 12:STUDENT ED.-TEXT

The Federal Reserve expands the money supply by 5 percent. a. Use the theory of liquidity preference to illustr...

Brief Principles of Macroeconomics (MindTap Course List)

What is a share of stock? What is a bond? Explain their differences and similarities.

Principles of Macroeconomics (MindTap Course List)

There are several determinants of aggregate supply that can cause the aggregate supply curve to shift. a. Descr...

Economics:

A marginal change is one that a. is not important for public policy. b. incrementally alters an existing plan. ...

Essentials of Economics (MindTap Course List)

FINDING THE REQUIRED INTEREST RATE Your parents will retire in 19 years. They currently have 350,000 saved, and...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

How can technology help to build long-term customer relationships?

Foundations of Business (MindTap Course List)

Identify the eight functions of marketing physical goods.

Contemporary Marketing

(Costs in the Short Run) Identify each of the curves in the following graph:

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

Are common abbreviation such as lol and imho and all-lowercase writing acceptable in texting or instant messagi...

Essentials of Business Communication (MindTap Course List)

Define the cash conversion cycle (CCC) and explain why, holding other things constant, a firm's profitability w...

Fundamentals of Financial Management (MindTap Course List)

The adjusting entry for expired workers compensation premium is _____. a. Workers Compensation Insurance Payabl...

College Accounting (Book Only): A Career Approach

Why would a company maintain separate accounts receivable ledgers for each customer, as opposed to maintaining ...

Financial Accounting

The financial statements are interrelated. What item of financial or operating data appears on both the income ...

Financial & Managerial Accounting

Go Systems had the following payroll data for wages for the week ended February 5. The state income tax is assu...

College Accounting (Book Only): A Career Approach

Why are deductions from employees' earnings classified as liabilities for the employer?

Accounting (Text Only)

At the end of 20-2, Martel Co. had 380,000 in Accounts Receivable and a debit balance of 6,000 in Allowance for...

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Your opportunity cost of going to a movie is a. the price of the ticket. b. the price of the ticket plus the co...

Principles of Macroeconomics (MindTap Course List)

Why is the NFV of a relatively long-term project (one for which a high percentage of its cash flows occurs in t...

Fundamentals of Financial Management (MindTap Course List)

Discuss the decisions that must be made prior to initiating structured systems analysis. Indicate how the syste...

Pkg Acc Infor Systems MS VISIO CD

How would each of the following scenarios affect a firms cost of debt, rd( 1 T); its cost of equity, rs; and i...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Which of the following are likely to cause a reduction in consumption? a. An increase in interest rates b. An i...

Exploring Economics

Pew Research Center is a nonpartisan polling organization that provides information about issues, attitudes, an...

Statistics for Business & Economics, Revised (MindTap Course List)

Accounts receivable and inventory turnover The following data (in millions) were adapted from recent financial ...

Survey of Accounting (Accounting I)

During 2019, Rachael Parkins, president of Mathieson Company, was paid a semimonthly salary of 8,000. Compute t...

PAYROLL ACCT.,2019 ED.(LL)-TEXT

Transactions for petty cash, cash short and over Cedar Springs Company completed the following selected transac...

Corporate Financial Accounting

Select the correct word or phrase in parentheses. What (affect, effect) will the change have on us? The consult...

Bcom

Suppose Real GDP is 5.2 trillion in year 1 and 5.3 trillion in year 2. What has caused the rise in Real GDP?

Economics (MindTap Course List)

Why would consumers prefer that the government tax products with elastic, rather than inelastic demand?

Economics For Today

Illustrate constant opportunity costs in a table similar to the one in Exhibit 1(a). Next, draw a PPF that is b...

Macroeconomics

In the preceding figure, which graph depicts a change in the PPF that is a likely consequence of war?

Microeconomics

Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and rev...

Purchasing and Supply Chain Management

What are the three viewpoints of product life cycle? How do they differ?

Cornerstones of Cost Management (Cornerstones Series)

The Tatham Company is considering seven investments. The cash required for each investment and the net present ...

Practical Management Science

bartleby
© bartleby 2019