Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 5, Problem 19P
To determine
Prepare a multi-step comparative income statement of Company C for the two years ended December 31, 2019 and December 31, 2020.
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) Cecil Inc. operates with three divisions: Naperville, Metropolitan and Urbana. Below areselected results for each division over the last two fiscal years.a. Calculate Return on Assets (ROA) for Cecil Inc. in 2021 and 2020 (report percentages rounded twodecimals).b. Calculate Return on Sales (ROS) for Cecil Inc. in 2021 and 2020 (report percentages rounded twodecimals).c. Industry Averages are 15% for ROA and 10% for ROS in 2021 and 2020. Discuss Cecil Inc.’sperformance trends and results compared to industry averages (discuss performance, do not repeatcalc’s from above).Revenues: 2021 2020 Naperville 22,500,000 19,600,000 Metropolitan 15,300,000 12,500,000 Urbana 9,500,000 8,700,000Operating Income: Naperville 1,900,000 1,800,000 Metropolitan 1,100,000 900,000 Urbana 1,100,000 1,050,000Average Total Assets: Naperville 10,000,000 9,500,000 Metropolitan 8,000,000 6,500,000 Urbana 4,500,000 4,300,000Number of Managers: Naperville 15 5 Metropolitan 9 10 Urbana 12
The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2021 and 2020:
2021
2020
Sales revenue
$
15,000,000
$
9,600,000
Cost of goods sold
9,200,000
6,000,000
Gross profit
5,800,000
3,600,000
Operating expenses
3,200,000
2,600,000
Operating income
2,600,000
1,000,000
Gain on sale of division
600,000
—
3,200,000
1,000,000
Income tax expense
800,000
250,000
Net income
$
2,400,000
$
750,000
On October 15, 2021, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as a component of an entity as defined by GAAP. The division was sold on December 31, 2021, for $5,000,000. Book value of the division’s assets was $4,400,000. The division’s contribution to Jackson’s operating income before-tax for each year was as follows:
2021
$400,000
2020
$300,000
Assume…
Forecast an Income Statement
Following is the income statement for Medtronic PLC.
Consolidated Statement of Income ($ millions) For Fiscal Year Ended
April 26, 2019
Net sales
$27,807
Costs and expenses
Cost of products sold
8,331
Research and development expense
2,330
Selling, general, and administrative expense
9,480
Amortization of intangible assets
1,605
Restructuring charges, net
198
Certain litigation charges, net
166
Other operating expense, net
258
Operating profit
5,439
Other nonoperating income, net
(373)
Interest expense
1,314
Income before income taxes
4,498
Income tax provision
547
Net income
3,951
Net income loss attributable to noncontrolling interests
(19)
Net income attributable to Medtronic
$3,932
Use the following assumptions to prepare a forecast of the company’s income statement for FY2020.
Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal…
Chapter 5 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 5 - In general, how does the income statement help...Ch. 5 - Prob. 2GICh. 5 - Define income under the capital maintenance...Ch. 5 - Prob. 4GICh. 5 - What is net income?Ch. 5 - What three things must a company determine to...Ch. 5 - Prob. 7GICh. 5 - Prob. 8GICh. 5 - Give an example and explanation for each of the...Ch. 5 - Define expenses. What do expenses measure?
Ch. 5 - Prob. 11GICh. 5 - Define gains and losses. Give examples of three...Ch. 5 - Prob. 13GICh. 5 - What items are included in a companys income from...Ch. 5 - How are unusual or infrequent gains or losses...Ch. 5 - What is interperiod tax allocation?Ch. 5 - Prob. 17GICh. 5 - Prob. 18GICh. 5 - Prob. 19GICh. 5 - Prob. 20GICh. 5 - Prob. 21GICh. 5 - Prob. 22GICh. 5 - Prob. 23GICh. 5 - Prob. 24GICh. 5 - Prob. 25GICh. 5 - Prob. 26GICh. 5 - Prob. 27GICh. 5 - Prob. 28GICh. 5 - Prob. 29GICh. 5 - Prob. 30GICh. 5 - What is the rate of return on common equity? What...Ch. 5 - Prob. 32GICh. 5 - Prob. 33GICh. 5 - Which of the following is expensed under the...Ch. 5 - The following information is available for Cooke...Ch. 5 - The following information is available for Wagner...Ch. 5 - Prob. 4MCCh. 5 - A loss from the sale of a component of a business...Ch. 5 - In a statement of cash flows, receipts from sales...Ch. 5 - Brandt Corporation had sales revenue of 500,000...Ch. 5 - Refer to RE5-1. Prepare a single-step income...Ch. 5 - Shaquille Corporation began the current year with...Ch. 5 - Dorno Corporation incurred expenses during the...Ch. 5 - Niler Corporation reported the following after-tax...Ch. 5 - Jordan Corporation reported retained earnings of...Ch. 5 - Prob. 7RECh. 5 - Prob. 8RECh. 5 - Amelias Bookstore reported net income of 62,000...Ch. 5 - Prob. 10RECh. 5 - Prob. 1ECh. 5 - Cost of Goods Sold and Income Statement Schuch...Ch. 5 - Income Statement Calculation OConnor Companys...Ch. 5 - Results of Discontinued Operations On November 30,...Ch. 5 - Multiple-Step and Single-Step In coin Statements...Ch. 5 - Prob. 6ECh. 5 - Multiple-Step and Single-Step Income Statements,...Ch. 5 - Cost of Goods Sold, Income Statement. and...Ch. 5 - Net Cash Flow from Operating Activities The...Ch. 5 - Prob. 10ECh. 5 - Statement of Cash Flows The following items...Ch. 5 - Statement of Cash Flows The following are several...Ch. 5 - Classifications Where would each of the following...Ch. 5 - Rate of Change nalyses eiher Company presents the...Ch. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Income Statement and Retained Earnings Huff...Ch. 5 - Prob. 18ECh. 5 - Interim Reporting (Appendix 5.1) Miller Company...Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Income Statement, Lower Portion Cunningham Company...Ch. 5 - Financial Statement Violations of U.S. GAAP The...Ch. 5 - Misclassiflcations Rox Corporations multiple-step...Ch. 5 - Misclassifications Olson Companys bookkeeper...Ch. 5 - Complex Income Statement The following items were...Ch. 5 - Prob. 8PCh. 5 - Financial Statement Deficiencies The following is...Ch. 5 - Comprehensive: Balance Sheet from Statement of...Ch. 5 - Net Income and Comprehensive Income At the...Ch. 5 - Statement of Cash Flows A list of Fischer Companys...Ch. 5 - Statement of Cash Flows The following are Mueller...Ch. 5 - Prob. 14PCh. 5 - Rate of Change Analyses and Ratios Analyses The...Ch. 5 - Comprehensive: Income Statement and Retained...Ch. 5 - Comprehensive: Income Statement and Supporting...Ch. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Prob. 20PCh. 5 - Prob. 1CCh. 5 - Prob. 2CCh. 5 - Prob. 3CCh. 5 - Prob. 4CCh. 5 - Nonrecurring Items Lynn Company sells a component...Ch. 5 - Prob. 6CCh. 5 - Accrual Accounting GAAP requires the use of...Ch. 5 - Ethics and Sale of Operating Component It is the...Ch. 5 - Analyzing Starbuckss Income Statement and Cash...Ch. 5 - Prob. 11C
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