Question

CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION « BACK Question 1 The following information is available for Marin Inc. for the year ended December 31, 2017: Loss on discontinued operations $76,000 Retained earnings January 1, 2017 Rent revenue 88,000 Selling expenses Income tax applicable to continuing operations ,312,000 Income tax applicable to loss on discontinued operations Administrative expenses 519,000 Cost of goods sold Loss on write-down of inventory 37,000 Sales revenue Gain on sale of equipment 36,000 Cash dividends declared Unrealized gain on available-for-sale securities 21,000 Interest expense 200,000 shares were outstanding during all of 2017. $1,120,000 878,000 33,000 1,634,000 3,735,000 230,000 63,000 Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.45.) Marin Inc. Income Statement For the Year Ended December 31, 2017 Sales Revenue v 3735000 Cost of Goods Sold 1634000 Gross Profit 2101000

Answer 1

Preparation of the Income Statement

MARIN INC.

Income statement

For the year ended December 31,2017

Particulars	Amount($)	Amount($)
Sales revenue		3735000
Less: Cost of goods sold		(1634000)
Gross profit		2101000
Less: Operating expenses
Administrative expenses	519000
Selling expenses	878000
Total expenses		(1397000)
Income from operations		704000
Other revenues and gains:
Rent revenue	88000
Gain on sale of equipment	36000	124000
Other expenses and losses:
Loss on write down of inventory	37000
Interest expense	63000	(100000)
Income from continuing operations before tax		728000
Income tax		(312000)
Income from continuing Operations		416000
Discontinued operations:
Loss on discontinued operations	76000
Less: Income tax	(33000)	(43000)
Net Income		373000
Per share of common stock:
Income from continuing operations {$416000/200000 outstanding shares }		2.08
Less: Loss on discontinued operations(net of tax) {$43000/200000}		0.22
Net Income		1.86

Preparation of a Comprehensive income statement for 2017

MARIN INC.

Comprehensive Income Statement

For the year ended December 31,2017

particulars	Amount($)
Net income	373000
Other comprehensive income:
Unrealized holding gain on AFS securities	21000
Comprehensive Income	394000

Preparation of the Retained earnings statement for 2017

MARIN INC.

Retained earnings Statement

For the year ended December 31 , 2017

particulars	Amount
Retained earnings-January 1	1120000
Add: Net Income	373000
	1493000
Less: Dividends	(230000)
Retained earnings-December 31	1263000

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