If a manufacturing company's annual income statement included a large gain from the sale of investment...
If a manufacturing company's annual income statement included a large gain from the sale of investment securities, then whether this gain should be included in an assessment of the company's permanent earnings depends on
Homework Answers
If a manufacturing company's annual income statement included a large gain from the sale of investment securities, then whether this gain should be included in an assessment of the company's permanent earnings depends the frequency of same transactions and also on whether it is an operating or nonoperation item. If it is going to recur or less likely to occur. Being manufacturing company it is believed that the sale of investment securities is not a part of normal operations and the gains on sale are not likely to continue into future profitability. It is less likely to occur. Thus, because of all these characteristics it is treated as permanent earnings.
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If a manufacturing company's annual income statement included a
large gain from the sale of investment...
A company's activities for Year 2 included the following: Unrealized gain on available for sale debt...
A company's activities for Year 2 included the following: Unrealized gain on available for sale debt securities 9,600 Cost of goods sold 1,400,000 Prior service cost adjustment for defined benefit pension plan 195,000 Selling and administrative expense 600,000 Gain on sale of available for sale securities 16,000 Gain on disposal of a discontinued business segment 26,000 Sales returns 106,000 Gross sales 7,300,000 The company has a 30% effective income tax rate. What is the company's net income for Year 2?...
Annual Report: Other Comprehensive Income (in millions) Year 1 Year 2 Year 3 Net unrealized gain...
Annual Report: Other Comprehensive Income (in millions) Year 1 Year 2 Year 3 Net unrealized gain (loss) on available-for-sale securities: Year 1: $(9,324) Year 2: $47,230 Year 3: $19,238 1. Explain why the net unrealized gain on available-for-sale securities was negative in Year 1. 2. Explain why the account balance became positive in Year 2 but then declined in Year 3. Are the changes in this account reported on company's income statement? on the company’s income statement? Would this account...
The first list below shows the financial statements normally included in a company's annual financial statements....
The first list below shows the financial statements normally included in a company's annual financial statements. The second list shows some amounts that often appear in those financial statements. A. SFP B.Statement of comprehensive income-profit and loss section. C. Statement of comprehensive income-other comprehensive income section. D. Statement of cash flows. E.Statement of change in shareholder's equity. (B,D,F) 1. Net income ( ) 2. Ratained earnings(opening) ( ) 3.Translation gain/loss on foreigh subsidiaries. ( ) 4.Provision for restructuring costs. (...
Land costing $46,730 was sold for $87,839 cash. The gain on the sale was reported on the income statement as other incom...
Land costing $46,730 was sold for $87,839 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?
Missing Statement Items, Available-for-Sale Securities Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement...
Missing Statement Items, Available-for-Sale Securities Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are as follows: There were no dividends. Determine the missing items. If required, use the minus sign to indicate a net or operating loss, unrealized losses, or a credit balance in the valuation allowance account. Highland Industries Inc. Selected Income Statement Items For the Years...
Missing Statement Items, Available-for-Sale Securities Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement...
Missing Statement Items, Available-for-Sale Securities Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are as follows: There were no dividends. Determine the missing items. If required, use the minus sign to indicate a net or operating loss, unrealized losses, or a credit balance in the valuation allowance account. Highland Industries Inc. Selected Income Statement Items For the Years...
The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for...
The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $17,500; cost of goods sold, $7,300; selling expenses, $1,410; general and administrative expenses, $910; interest revenue, $160; interest expense, $290. Income taxes have not yet been recorded. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every...
The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for...
The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $18,500; cost of goods sold, $7,800; selling expenses, $1,460; general and administrative expenses, $900; interest revenue, $100; interest expense, $260. Income taxes have not yet been recorded. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every...
Choose annual report of the APPLE Inc to gain a general understanding of the company's primary...
Choose annual report of the
APPLE Inc to gain a general understanding of the company's primary
business segments and products. Write a report addressing the
following questions based on your research. What products or
services are provided by the company? How does the financial
information provided in the annual report (focus on the income
statement) differ from financial information used for managerial
accounting purposes? As a manager making business decisions within
the company, what additional information would you need? (Remember...
On february 12, 2018, lily corporation invested $1,320,00 in short term available-for-sale marketable securities. The market value of this investment was $1,400,000 at december 31, 2018, but had slipp...
On february 12, 2018, lily corporation invested $1,320,00 in short term available-for-sale marketable securities. The market value of this investment was $1,400,000 at december 31, 2018, but had slipped to $1,390,000 by December 2019. In financial statements prepared on december 31, 2019, Lily corporation reports: a. The asset investment in marketable securities at $1,320,000 with footnote disclosure of the market value of $1,400,000. b. The asset investment in marketable securities at $1,390,000 and a $70,000 gain recognized in the income...
Missing Statement Items, Available-for-Sale Securities Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are as follows: There were no dividends. Determine the missing items. If required, use the minus sign to indicate a net or operating loss, unrealized losses, or a credit balance in the valuation allowance account. Highland Industries Inc. Selected Income Statement Items For the Years...
Missing Statement Items, Available-for-Sale Securities Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are as follows: There were no dividends. Determine the missing items. If required, use the minus sign to indicate a net or operating loss, unrealized losses, or a credit balance in the valuation allowance account. Highland Industries Inc. Selected Income Statement Items For the Years...
The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $17,500; cost of goods sold, $7,300; selling expenses, $1,410; general and administrative expenses, $910; interest revenue, $160; interest expense, $290. Income taxes have not yet been recorded. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every...
The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $18,500; cost of goods sold, $7,800; selling expenses, $1,460; general and administrative expenses, $900; interest revenue, $100; interest expense, $260. Income taxes have not yet been recorded. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every...
Choose annual report of the
APPLE Inc to gain a general understanding of the company's primary
business segments and products. Write a report addressing the
following questions based on your research. What products or
services are provided by the company? How does the financial
information provided in the annual report (focus on the income
statement) differ from financial information used for managerial
accounting purposes? As a manager making business decisions within
the company, what additional information would you need? (Remember...
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