Question

Chapter 4 Question 5 of 7 -/1 View Policies Current Attempt in Progress Presented below is information related to Novak Company at December 31, 2020, the end of its first year of operations. Sales revenue Cost of goods sold Selling and administrative expenses Gain on sale of plant assets Unrealized gain on available-for-sale debt investments Interest expense Loss on discontinued operations Dividends declared and paid $291,980 128,220 51,800 27,190 10,240 5.700 12.550 4,600 Compute the following: $ (a) Income from operations $ (b) Net income $ (c) Comprehensive income $ (d) Retained earnings balance at December 31, 2020

Answer 1

Solution:

Shamrock company
Income from Operations
Sales Revenue	291980
Less: expenses
Cost of goods sold	128220
Selling and administrative expesnes	51800
Income from Operations	111960
Net Income
Income from Operations	111960
Add: Gain on sale of Plant assets	27190
Less:
Interest expenses	5700
Loss on discontinued operations	12550
Net income	120900
Comprehensive Income
Net income	120900
Add: Unrealized Gain	10240
Comprehensive Income	131140
Retained earnings
Net income	120900
Less: Dividend declared and paid	4600
Retained earnings	116300