Question

Problem 4-1 (Part Level Submission) The following information is related to Sheridan Company for 2017. Retained earnings balance, January 1, 2017 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2017 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $983,980 26,111,200 16,270,700 78,300 4,791,200 839,300 1,430,000 112,800 399,900 456,100 97,110 248,900 87,900 Sheridan Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sheridan sold the wholesale operations to Rogers Company. During 2017, there were 547,900 shares of common stock outstanding all year.

Answer 1

Amount $ 2,61,11,200 (1,62,70,700) 98,40,500 Multiple-step income statement for the year ended 31st December 2017:- Particulars Amount $ Sales Less: Cost of goods sold Gross Profit Less: Operating expenses Sales and administrative expenses (47,91,200) Total Operating expenses Less: Non-Operating expenses Other revenues and gains :- Interest Revenue 78,300 Gain on sale of Investments 1,12,800 (47,91,200) 1,91,100 Other expenses and losses :- Writeoff of goodwill Loss due to Flood damage (8,39,300) (3,99,900) (12,39,200) 40,01,200 (14,30,000) 25,71,200 Income from Continuing Operations before Income tax Income tax for 2017 Income from Continuing Operations Discontinued Operations - Less: Loss on disposition of the wholesale division (net of tax) Less: Loss on operations of the wholesale division (net of tax) Income/(Loss) from Dis-Continuing Operations Net Income (4,56,100) (97,110) (5,53,210) 20,17,990 Earnings per share:- Income from Continuing Operations (2571200/547900) Income/(Loss) from Dis-Continuing Operations (-553210/547900) Net Income (2017990/547900) 4.69 (1.01) 3.68