Question

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In 2017, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows: Debit Credit $ 2,930,000 263,000 Item 1. Net sales 2. Gain on state's condemnation of company property, net of tax 3. Cost of goods sold 4. Income taxes expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax B. LOSs of assets from meteor strike, net of tax $1,495, 310 219,000 220,000 790,000 459,000 650,000

Answer 1

Please find below table useful to compute desired results: -

2930000 263000 790000 10 =c1 A 1 Net Sales 2 Gain on State's condemnation of Company property, net of tax 3 Cost of Goods Sold 1495310 4 Income Taxes Expense 219000 5 Depreciation Expense 220000 6 Gain on Sale of Wholesale Business Segment, net of tax 7 Loss from operating wholesale business segment, net of tax 459000 8 Loss of assets from meteor strike, net of tax 650000 9 RANDA MANUFACTURING, INC. Income Statement 11 For Year Ended December 31, 2017 12 Net sales 13 Expenses: 14 Cost of goods sold 15 Depreciation expenses 16 Total operating expenses 17 18 Other unusual and/or infrequent gains (losses) 19 Gain on state's condemnation of company property, net of tax 20 Loss on assets from meteor strike, net of tax 21 Income from continuing operations before taxes 22 Less:- Income tax expenses 23 Income from continuing operations 24 Discontinued segment 25 Loss from operating wholesale business segment, net of tax 26 Gain on sale of wholesale business segment, net of tax 27 28 Net Income =B14+B15 =C12-C16 =C2 =-B8 =C17+C19+C20 =B4 =C21-C22 =B25+B26 =C23+C27

End results would be as follows: -

2.930,000 263.000 790,000 2.930,000 B 1 Net Sales 2 Gain on State's condemnation of Company property, net of tax 3 Cost of Goods Sold 1.495,310 4 Income Taxes Expense 219,000 5 Depreciation Expense 220.000 6 Gain on Sale of Wholesale Business Segment, net of tax 7 Loss from operating wholesale business segment, net of tax 459.000 8 Loss of assets from meteor strike, net of tax 650.000 9 RANDA MANUFACTURING, INC. 10 Income Statement 11 For Year Ended December 31, 2017 12 Net sales 13 Expenses: 14 Cost of goods sold 1.495,310 15 Depreciation expenses 220,000 16 Total operating expenses 17 18 Other unusual and/or infrequent gains (losses) 19 Gain on state's condemnation of company property, net of tax 20 Loss on assets from meteor strike, net of tax 21 Income from continuing operations before taxes 22 Less:- Income tax expenses 23 Income from continuing operations 24 Discontinued segment: 25 Loss from operating wholesale business segment, net of tax | (459,000) 26 Gain on sale of wholesale business segment, net of tax 790.000 27 28 Net Income 1,715,310 1.214.690 263,000 (650,000) 827,690 219.000 608,690 331,000 939,690