(8 points) Changes in all of E\u2019s balance sheet accounts during the current year, EXCEPT the change in E\u2019s retained earnings account follow. Compute E\u2019s net income (or net loss) for the year assuming the only two entries E made to her retained earnings account during the year were for a cash dividend declared and paid of $50,000 and her net income (or net loss) for the year. (This is NOT a statement of cash flows problem \u2013 do NOT format it like a statement of cash flows problem.)<\/p>\n
Cash decreased $250,000<\/p>\n
Accounts receivable decreased $ 65,000<\/p>\n
Fixed assets increased $165,000<\/p>\n
Accumulated depreciation increased $ 90,000<\/p>\n
Accounts payable decreased $120,000<\/p>\n
Unearned revenue decreased $ 15,000<\/p>\n
Notes payable increased $ 80,000<\/p>\n
Common stock increased $ 5,000<\/p>\n
Additional paid-in-capital increased $100,000<\/p>\n
Change in assets: – $250,000 – $65,000 + $165,000 – $90,000 = $240,000 decrease<\/p>\n
Change in liabilities: – $120,000 – $15,000 + $80,000 = $55,000 decrease<\/p>\n
Therefore, equity had to decrease by $185,000; equity increased by $105,000 due to common stock and APIC; equity decreased by the $50,000 dividend that reduces retained earnings; net loss must have been $240,000.<\/p>\n
Pederson, Inc. has the following data for the year ended December 31, 2017:<\/p>\n
Net sales $987,000<\/p>\n
Loss from discontinued operations \u00a0\u00a0\u00a0\u00a0\u00a0 24,000<\/p>\n
Cost of goods sold 240,000<\/p>\n
Interest expense \u00a0\u00a011,000<\/p>\n
Selling, general, and administrative expenses 325,000<\/p>\n
Assume Pederson\u2019s tax rate was 20% on all items. Also assume Pederson had 42,000 shares of common stock outstanding throughout the year. Prepare an income statement in good form for the year 2017. Round your EPS figure to the nearest penny.<\/p>\n
Pederson, Inc.<\/p>\n
Income Statement<\/p>\n
For the Year Ended December 31, 2017<\/p>\n
Net sales $987,000<\/p>\n
Cost of goods sold 240,000<\/p>\n
Selling, general and administrative expenses 325,000<\/p>\n
Income from operations 422,000<\/p>\n
Interest expense 11,000<\/p>\n
Income from continuing operations before taxes 411,000<\/p>\n
Income taxes 82,200<\/p>\n
Income from continuing operations 328,800<\/p>\n
Discontinued operations<\/p>\n
Loss, less applicable income tax of $4,800 19,200<\/p>\n
Net income $309,600<\/p>\n
Per share of common stock<\/p>\n
Income from continuing operations $7.83<\/p>\n
Loss on discontinued division, net of tax .46<\/p>\n
Net income $7.37<\/p>\n
(2 points) Penning Corporation reported the following:<\/p>\n
Net income $945,000<\/p>\n
Dividends on common stock $50,000<\/p>\n
Dividends on preferred stock $90,000<\/p>\n
Weighted average common shares outstanding 200,000<\/p>\n
What should Penning report as its earnings per share? Round your answer to the nearest penny.<\/p>\n
$945,000 – $90,000 \/ 200,000 = $4.275 = $4.28<\/p>\n","protected":false},"excerpt":{"rendered":"
(8 points) Changes in all of E\u2019s balance sheet accounts during the current year, EXCEPT the change in E\u2019s retained earnings account follow. Compute E\u2019s net income (or net loss) for the year assuming the only two entries E made to her retained earnings account during the year were for a cash dividend declared and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-78604","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=78604"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78604\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=78604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=78604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=78604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}