Question

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: Credit $2.940, 254, De 40 points 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 fron operating wholesale business segment, net of tax 8. Loss of assets from meteor strike, net of tax $1,500,414 217.00 250,00 765,000 460,00 664,000 Prepare the income statement for calendar year 2017 (Loss amounts should be indicated with a minus sign.) RANDA MERCHANDISING, INC. Income Statement For Year Ended December 31, 2017 Net sales Expenses Cost of goods sold Depreciation expense Income taxes expense Total operating expenses Other unusual and/or infrequent gains (losses)

Answer 1

ANSWER-

RANDA MERCHANDISING, INC.

Income Statement
For the Year Ended December 31, 2017

Net Sales		$2,940,000
Expenses:-
Cost of goods sold	$1,500,414
Depreciation expenses	250,000
Total Operating Expenses		1,750,414
		$1,189,586
Other Unusual and / or infrequent gains (losses):-
Gain on state's condemnation of company property,net of tax		254,000
Loss on assets from meteor strike, net of tax		(664,000)
Income from continuing operations before tax		779,586
Income tax expenses		217,000
Income from continuing operations		562,586
Discontinued Segment:-
Loss from operating wholesale business segment ,net of tax	(460,000)
Gain on sale of wholesale business segment, net of tax	765,000
		305,000
Net Income		$867,586

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