which of these statement presents an "extraordinary item" as shown on an inclme statement? a. interest...
Homework Answers
1. Extra ordinary item is loss due to flood hence option "d" is correct answer.
2. To analyse the financial statement option "c" is more advisable.
3. Option "a is more sound as it gives more sound idea for revenue.
4. The answer is option "c" as net income or loss is the end result of a company's revenue less expenses and not bank reconciliation or as the first item on an income statement.
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which of these statement presents an "extraordinary item" as shown
on an inclme statement?
a. interest...
1. operating expenses are those that a. relate to long term marketing b. relate to day to day activities c. relate to ex...
1. operating expenses are those that a. relate to long term marketing b. relate to day to day activities c. relate to extraordinary items 2. which of the following items are listed as seperate line items on an income statement in order to facilitate analysis and understanding? (select all that apply) a. a gain on sale of a major division of a company b. an increase in the sale price by more than 20% c. the effect of prior years...
Hi, please help to explain the problems below. For question 85, I wonder why the extraordinary...
Hi, please help to explain the problems below. For question 85, I wonder why the extraordinary loss is calculated net of tax, while the usual gain is not calculated net of tax? Thanks 85. Sandstrom Corporation has an extraordinary loss of $200,000, an unusual gain of $140,000, and a tax rate of 40%. At what amount should Sandstrom report each item? Extraordinary loss Unusual gain a. $(200,000) $140,000 b. (200,000) 84,000 c. (120,000) 140,000 d. (120,000) 84,000 83. At...
AP-1B LO 3 Indicate the section of the statement of cash flows where each item would...
AP-1B LO 3 Indicate the section of the statement of cash flows where each item would be located (operating, investing or financing activities) using the indirect method. Also indicate whether the item would increase or decrease cash using the indirect method. Item Section Effect on Cash Decrease Investing Loss on sale of equipment Decrease in accounts payable Increase in food inventory Depreciation expense Gain on sale of investments Dividends paid Issuance of shares in the company Net income Decrease in...
Apex Company prepared the statement of cash flows for the current year that is shown below:...
Apex Company prepared the statement of cash flows for the current year that is shown below: $ 40,000 22,000 (60,000) (25,000) 9,000 55,000 (12,000) 5,000 (6,000) 34,000 Apex Company Statement of Cash Flows-Indirect Method Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Net cash provided by (used in) operating activities Investing...
Hi For Q.110, I did not understand why "Loss on disposal of equipment $18,000" (being an...
Hi For Q.110, I did not understand why "Loss on disposal of equipment $18,000" (being an extraordinary item) is included in the calculation because of the question " Income before extraordinary item"? For Q.112,113 Please explain the principle of total infrequent net gains losses that not considered extraordinary. 110. Logan Corp.'s trial balance of income statement accounts for the year ended December 31, 2014 included the following: Debit Credit Sales revenue $280,000 Cost of goods sold $150,000 Administrative...
$3,300 2,700 12,800 89,700 Cost of Goods Sold, Income Statement, and Statement of Comprehensive Income Gaskin...
$3,300 2,700 12,800 89,700 Cost of Goods Sold, Income Statement, and Statement of Comprehensive Income Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: Sales $142,000 Interest revenue Purchases returns 5,200 Purchases discounts taken Gain on sale of equipment (pretax) 3,800 Inventory, January 1, 2019 Freight-in 3,400 Purchases Selling expenses 15,600 Administrative expenses Unrealized increase in fair value of Loss from truck accident (pretax) 2,400 available-for-sale securities The following additional information is also...
The following income statement was prepared by Walters Corporation a seller of equipment for the year...
The following income statement was prepared by Walters Corporation a seller of equipment for the year ended Dec-31, 2013 Walters Corporation Comprehensive Income Statement For the year ended Dec-31, 2013 Sales revenue (Note: 1)……………………………………………………………………………………... $310,000 Cost of goods sold…………………………………………………………………………………………………………..…(140,000) Gross profit………………………………………………………………………………………………………………………. 170,000 Less: Operating Expenses. Selling and administrative expenses…………………………………………50,000 Loss on sale of Investment……………………………………………………… 15,000 (65,000) Other income and expense Gain on sale of plant assets…………….………………………………....... 40,000 Depreciation expense……………………………………………….……..….. (15,000) Rent Expense………………………………………………………….……..…….. (6,000) Dividend revenue…………………………………………………………….…… 50,000 Gain on disposal of a...
Based on the following information for XYZ, Inc., prepare the operating section of the statement of...
Based on the following information for XYZ, Inc., prepare the operating section of the statement of cash flows for 2021: 2021 2020 $ $ 8,836,351 16,918,496 1,475,769 7,520,299 24,789,005 1,545,308 17.50% + 31.75% - 4.50% - Revenues Gain / (loss) on sales of assets Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Total expenses Net Income $ 104,558,367 Current assets (275,660) Accounts receivable 104,282,707 Inventory Prepaid expenses 54,370,351 21,957,257 Current liabilities 9,410,253 Accounts payable 85,737,861 Accrued liabilities...
Hi, Please explain the principle for the below-corrected questions. Thanks 61. Which one of the following...
Hi, Please explain the principle for the below-corrected questions. Thanks 61. Which one of the following types of losses is excluded from the determination of net income in income statements? a. Material losses resulting from transactions in the company's investments account. b. Material losses resulting from unusual sales of assets not acquired for resale. c. Material losses resulting from the write-off of intangibles. d. Material losses resulting from correction of errors related to prior periods. 67. Gains and losses identified...
ndicate in which financial statement each item would most likely appear, by selecting income statement (1),...
ndicate in which financial statement each item would most likely appear, by selecting income statement (1), balance sheet (B), or statement of cash flows (CF) from the drop down provided. a. Assets b. Cash from operating activities Equipment d. Expenses e. Liabilities f. Net decrease (or increase) in cash 9. Revenues h. Total liabilities and equity
AP-1B LO 3 Indicate the section of the statement of cash flows where each item would be located (operating, investing or financing activities) using the indirect method. Also indicate whether the item would increase or decrease cash using the indirect method. Item Section Effect on Cash Decrease Investing Loss on sale of equipment Decrease in accounts payable Increase in food inventory Depreciation expense Gain on sale of investments Dividends paid Issuance of shares in the company Net income Decrease in...
Apex Company prepared the statement of cash flows for the current year that is shown below: $ 40,000 22,000 (60,000) (25,000) 9,000 55,000 (12,000) 5,000 (6,000) 34,000 Apex Company Statement of Cash Flows-Indirect Method Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Net cash provided by (used in) operating activities Investing...
$3,300 2,700 12,800 89,700 Cost of Goods Sold, Income Statement, and Statement of Comprehensive Income Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: Sales $142,000 Interest revenue Purchases returns 5,200 Purchases discounts taken Gain on sale of equipment (pretax) 3,800 Inventory, January 1, 2019 Freight-in 3,400 Purchases Selling expenses 15,600 Administrative expenses Unrealized increase in fair value of Loss from truck accident (pretax) 2,400 available-for-sale securities The following additional information is also...
Based on the following information for XYZ, Inc., prepare the operating section of the statement of cash flows for 2021: 2021 2020 $ $ 8,836,351 16,918,496 1,475,769 7,520,299 24,789,005 1,545,308 17.50% + 31.75% - 4.50% - Revenues Gain / (loss) on sales of assets Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Total expenses Net Income $ 104,558,367 Current assets (275,660) Accounts receivable 104,282,707 Inventory Prepaid expenses 54,370,351 21,957,257 Current liabilities 9,410,253 Accounts payable 85,737,861 Accrued liabilities...
ndicate in which financial statement each item would most likely appear, by selecting income statement (1), balance sheet (B), or statement of cash flows (CF) from the drop down provided. a. Assets b. Cash from operating activities Equipment d. Expenses e. Liabilities f. Net decrease (or increase) in cash 9. Revenues h. Total liabilities and equity
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