1. Net Income = $103,840
Explanation;
Net Sales | $637,200 |
(-) Cost of Goods Sold | $(247,800) |
Administrative Expenses | $(118,000) |
Selling Expenses | $(94,400) |
Discontinued Operations Loss | $(47,200) |
Income before Income Tax | $129,800 |
Income Tax ($129,800 * 20%) | $25,960 |
Net Income | $103,840 |
2. Oriole Corporation Income Statement
Particulars | Amount |
Income from continuing operating before Income Tax | $177,000 |
Income Tax | $35,400 |
Income from continuing operations | $141,600 |
Discontinued Operations Net of Tax | $37,760 |
Net Income / (Loss) | $103,840 |
Earning Per Share | |
Income from continuing operation | $14.16 |
Loss on Discontinued Operations Net of Tax | ($3.78) |
Net Income /(Loss) | $10.38 |
Explanation;
1.Income from continuing operation before Income Tax = $129,800 + $47,200 = $177,000
2. Income Tax = $177,000 * 20 % =35,400
Income from continuing operation = $141,600 / 10,000 = 14.16
Discontinued Operations = $47,200 * 20 % = $9,440
= $47,200 - $9,440 = $ 37,760
Presented below are selected ledger accounts of Oriole Corporation as of December 31, 2020. Cash Administrative...
Presented below are selected ledger accounts of Oriole Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% $59,000 118,000 94,400 637,200 247,800 23,600 17,700 47,200 35,400 106,200 Compute net income for 2020. Net income $ e Textbook and Media Prepare a partial income...
Presented below are selected ledger accounts of Marigold Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% $43,000 86,000 68,800 464,400 180,600 17,200 12,900 34,400 25,800 77,400 Compute net income for 2020. Net income $ Prepare a partial income statement beginning with income...
Presented below are selected ledger accounts of Skysong Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% $45,000 90,000 72,000 486,000 189,000 18,000 13,500 36,000 27,000 81,000 Prepare a partial income statement beginning with income from continuing operations before income tax, and including...
Presented below are selected ledger accounts of Whispering Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% $65,000 130,000 104,000 702,000 273,000 26,000 19,500 52,000 39,000 117,000 * Your answer is incorrect. Compute net income for 2020. Net income $ 702000 Prepare a...
Presented below are selected ledger accounts of Marigold Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% $43,000 86,000 68,800 464,400 180,600 17,200 12,900 34,400 25,800 Compute net income for 2020. Net income $ Prepare a partial income statement beginning with income from...
Presented below are selected ledger accounts of Sunland Corporation as of December 31, 2020. Cash $52,000 Administrative expenses 104,000 Selling expenses 83,200 Net sales 561,600 Cost of goods sold 218,400 Cash dividends declared (2020) 20,800 Cash dividends paid (2020) 15,600 Discontinued operations (loss before income taxes) 41,600 Depreciation expense, not recorded in 2019 31,200 Retained earnings, December 31, 2019 93,600 Effective tax rate 20% Compute net income for 2020. Net income $ Prepare a partial income statement beginning with income...
10,000 shares
Presented below are selected ledger accounts of Bramble Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% $53,000 106,000 84,800 572,400 222,600 21,200 15,900 42,400 31,800 95,400 Compute net income for 2020. Net income Prepare a partial income statement beginning with...
Exercise 4-08 Presented below are selected ledger accounts of Kingbird Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% $60,000 120,000 96,000 648,000 252,000 24,000 18,000 48,000 36,000 108,000 Compute net income for 2020. Net income $ Prepare a partial income statement beginning...
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
continuing operations before income tax, and including...
Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% $65,000 130,000 104,000 702,000 273,000 26,000 19,500 52,000 39,000 117,000 Compute net income for 2020. Net income $ e Textbook and Media Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings...