Benson Company uses a periodic inventory system and presents the following items derived from its December 31, 2017, adjusted trial balance:
Operating Expenses |
$ 39,830 |
Dividend Revenue |
1,200 |
Retained Earnings, January 1, 2017 |
77,550 |
Sales (net) |
235,650 |
Common Stock, $10 par |
50,000 |
Merchandise Inventory, January 1, 2017 |
26,400 |
Purchases (net) |
81,720 |
Balance sheet information | ||
Assets | 12/31/18 | 12/31/17 |
Cash | $20,000 | $ 38,000 |
Accounts receivable | 83,000 | 70,000 |
Inventory | 90,000 | 85,000 |
Prepaid Insurance | 2,000 | 1,700 |
Equipment | 40,000 | 25,000 |
Less: Accumulated depreciation | (700) | (500) |
Total assets | $234,300 | $219,200 |
Liabilities and Stockholders' Equity | ||
Accounts Payable | $30,000 | $36,000 |
Income taxes payable | 20,000 | 15,000 |
Common stock | 100,000 | 100,000 |
Retained earnings | 84,300 | 68,200 |
Total liabilities and stockholders' equity | $234,300 | $219,200 |
The following information is also available for 2017 and is not reflected in the preceding accounts:
Benson Company
INCOME STATEMENT
For the year ended December 31,2017
Particulars Amount($)
Sales revenue 235,650
Cost of goods sold (78,090)
Gross Profit 157,560
Operating Expenses:
Total Operating Exp. (39,830)
Operating Income
Other items:
Dividend Revenue 1200
Loss on write off of
damaged inventory (7620)
Lost from earthquake (4700) (11120)
Pretax income from continuing operations 106,610
Income tax expense (106,610 * 30%) (31,983)
Income from continuing operations 74,627
Results from discontinued operations:
Income from operations of discontinued
Division E (net of income taxes) 2030
Loss on disposal of Division E (net of income
taxes) (2940)
Net income 73,717
Components of Income Earnings per common share(# per share)
Net income 14.74 (73717 / 5000)
Profit margin on sales ratio 66.86% ((157560 / 235650) * 100)
Benson Company
Statement of Cash Flows
For the year ended December 31st, 2017.
Amount($)
Cash Flows from Operating Activities
Net Income 73,717
Adjustment for non cash effect:
Depreciation expense 200
Changes in current assets and current liabilities:
Increase in accounts receivable (7000)
Increase in inventory (5000)
Increase in prepaid insurance (300)
Decrease in accounts payable (6000)
Increase in income taxes payable 5000
Net Cash flows for operating operating activities 60617
Cash Flows from Investing Activities
Purchase of equipment (15500) (25000 - 500 - 40000)
Net Cash flows for operating investing activities (15500)
Cash Flows from Financing Activities
Payment of dividends (9200) (10000 * 0.92)
Net Cash flows for operating investing activities (9200)
Net increase in cash 35917
Beginning Cash Balance 38000
Ending cash balance 20000
Difference in cash 53,917
Benson Company uses a periodic inventory system and presents the following items derived from its December...
Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances taken from its December 31, 2019 adjusted trial balance: Sales (net) $122,000 Operating expenses $27,300 Interest expense 3,100 Common stock, $5 par 22,000 Cost of goods sold 58,000 Retained earnings, 1/1/2019 42,700 The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.02 per share...
Sage Hill Inc reported income from continuing operations before taxes during 2017 of $2,300,000. Additional transactions occurring in 2017 but not considered in the $2,300,000 are as follows. 1. Again of $107.000 (pretax) as a result of selling securities from its investment portfolio. 2. A $24,000 loss before taxes as a result of operating the discontinued clothing division during 2017 3. A loss of $66,000 before taxes as a result of disposing of its clothing division. Assume that this transaction...
CALCULATOR AL SORTEN PRINTER VERSTON BLACK NEXT Exercise 4-17 The following information was taken from the records of Martinez Inc. for the year 2017: Income tax applicable to income from continuing operations $194,310; income tax applicable to lesson discontinued operations $28,628, and unrealized holding gain on available for sale securities (net of tax) $16,900. Gain on sale of equipment Loss on discontinued operations Administrative expenses Rent revenue Loss on write down of inventory $98,700 84,200 243,600 46,600 62,900 Cash dividends...
The following information is available for Marin Inc. for the
year ended December 31, 2017:
Loss on discontinued operations
$75,000
Retained earnings January 1, 2017
$1,240,000
Rent revenue
87,000
Selling expenses
861,000
Income tax applicable to continuing operations
296,000
Income tax applicable to loss on discontinued operations
28,000
Administrative expenses
512,000
Cost of goods sold
1,674,000
Loss on write-down of inventory
35,000
Sales revenue
3,725,000
Gain on sale of equipment
37,000
Cash dividends declared
221,000
Unrealized gain on available-for-sale securities...
Kelsy Company (Homework) Following are financial data for Kelsy Company for the year ended December 31, 2020. Revenues and expenses: Continuing operations: Net sales revenue $1,950,000 Cost of goods sold. 510,000 Selling & administrative expenses 200,000 Interest income 10,000 Interest expense 50,000 Discontinued operations-Division X (Note A): Net sales revenue. 800,000 Cost of goods sold 700,000 Selling & administrative expenses 500,000 Other: Discontinued division phase-out loss (Note A). 250,000 Litigation loss (Note B). 100,000 Dividends declared (Note C). 220,000 Note...
Trayer Corporation has income from continuing operations of
$256,000 for the year ended December 31, 2017. It also has the
following items (before considering income taxes).
1. An unrealized loss of $86,000 on available-for-sale
securities
2. A gain of $32,000 on the discontinuance of a division
(comprised of a $18,000 loss from operations and a $50,000 gain on
disposal).
3. A correction of an error in last year’s financial statements
that resulted in a $30,000 understatement of 2016 net income....
Presented below are selected ledger accounts of Sheridan
Corporation as of December 31, 2020.
Cash
$46,000
Administrative expenses
92,000
Selling expenses
73,600
Net sales
496,800
Cost of goods sold
193,200
Cash dividends declared (2020)
18,400
Cash dividends paid (2020)
13,800
Discontinued operations (loss before income taxes)
36,800
Depreciation expense, not recorded in 2019
27,600
Retained earnings, December 31, 2019
82,800
Effective tax rate 20%
Prepare a partial income statement beginning with income from
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Complex Income Statement The following items were derived from Woodbine Circle Corporation's adjusted trial balance on December 31, 2019: Debit Credit $500,000 1,500,000 2,500,000 15,100,000 Cash Accounts receivable, net Inventory Property, plant, and equipment Accumulated depreciation Accounts payable Income taxes payable Notes payable Common stock ($1 par value) Additional paid-in capital Retained earnings, January 1, 2019 Sales-regular Sales-AL Division Cost of sales-regular Cost of sales-AL Division Administrative expenses-regular Administrative expenses-AL Division Interest expense-regular Interest expense-AL Division Loss on sale of...
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10,000 shares
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