Checkpoint Systems is a leading provider of source tagging, handheld labeling systems, retail merchandising systems, and bar-code labeling systems. In a press release, Checkpoint stated the following:
GAAP reported net loss for the fourth quarter of 2004 was $29.3 million, or $0.78 per diluted share, compared to net earnings of $4.5 million, or $0.13 per diluted share, for the fourth quarter 2003. Excluding impairment and restructuring charges, net of tax, the Company’s net income for the fourth quarter 2004 was $0.30 per diluted share, compared to $0.27 per diluted share in the fourth quarter 2003.
Calculate the amount of the impairment and restructuring charges Checkpoint reported in 2004 and 2003. Discuss why the firm reported earnings both including and excluding impairment and restructuring charges.
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Financial Reporting, Financial Statement Analysis and Valuation
- The ledger of Starship Corporation at December 31, 2020, contains the following summary data. Net Sales $1,700,000 Selling expenses 100,000 Other revenues and gains 20,000 Cost of goods sold 900,000 Administrative expenses 200,000 Other expenses and losses 30,000 Your analysis reveals the following additional information that is not included in the above data. The entire laser division was discontinued on August 31. The income from operations for this division before income taxes was $70,000. The laser division was sold at a loss of $50,000 before income taxes. The company had an unrealized gain on available-for-sale securities of $80,000 before income taxes for the year. The income tax rate on all items is 30%. REQUIRED: Prepare a statement of comprehensive income for the year ended December 31, 2020.arrow_forwardThe following information is available for Kingbird Inc. for the year ended December 31, 2017: Loss on discontinued operations $65,000 Retained earnings January 1, 2017 $1,120,000 Rent revenue 85,000 Selling expenses 860,000 Income tax applicable to continuing operations 288,000 Income tax applicable to loss on discontinued operations 22,000 Administrative expenses 500,000 Cost of goods sold 1,620,000 Loss on write-down of inventory 32,000 Sales revenue 3,715,000 Gain on sale of equipment 30,000 Cash dividends declared 210,000 Unrealized gain on available-for-sale securities 20,000 Interest expense 45,000 200,000 shares were outstanding during all of 2017. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.45.)arrow_forwardWilma Company experienced a P500,000 decline in the market value of inventory at the end of the first quarter. The entity had expected this decline to reverse in the second quarter, and in fact, the second quarter recovery exceeded the previous decline by P100,000. What amount of gain or loss should be reported in the interim statements for the first and second quarters? ---------------- Choices: First quarter Second quarter a. 500,000 loss. 500,000 gain b. 500,000 loss 600,000 gain c. 500,000 loss 100,000 gain d. 0 0arrow_forward
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