Question

-/3 > < Question 6 of 6 View Policies Current Attempt in Progress The following information is related to Bonita Company for 2020. Retained earnings balance, January 1, 2020 $1.038,800 Sales Revenue 26,500,000 Cost of goods sold 16,960,000 Interest revenue 74,200 Selling and administrative expenses 4,982,000 Write-off of goodwill 869.200 Income taxes for 2020 1,318,640 Gain on the sale of investments 116,600 Loss due to flood damage 413.400 Loss on the disposition of the wholesale division (net of tax) 466,400 Loss on operations of the wholesale division (net of tax) 95,400 Dividends declared on common stock 265,000 Dividends declared on preferred stock 84,800 Bonita Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Bonita sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year, (a 1)

Answer 1

Multisteb Income Statement :- Multi-step Income statement Segretate the operating income from the hon-Operating income and losses. BONITA COMPANY Income Statement for the year ended December 31, 2020 Sales Revenue 26,500,000 leasi- Cost of Gooche cold 16.960,00 Gross Profit 9640,000 less: Selling and administration expenses 4,982,00 Income from operations 4558,000 Add: Other nevenuci- Interest revenue 44,200 Gain on Cale of Investments 116,600 Leis - Other expenses :- Imparcment changes Thcome from Continuing operations 3874,600 before tax Discontinued Operations :- lessi- Loss from discoutinued operation 561,800 (Including loss on disporal of $466,400) Income before Tax 869.200 133, 17,800 CS Scanned with CamScanner

Income before Tax less :- Income Tax 3317,800 1,318,640 1,999,160 413.400 Income before Shoabrelitary exhaordinary items Lets - Extra Ordinary loss (locs due to Hood damage) Net Income lek - Dividend declared on prefened 1,585,460 84,800 Stocks 1,500,960 500,000 Income available for common Stockholder's (n) No. of Common Stocks Outstancling Farning per Shorle - Common Shore (B) 3.00 CA/B) → Extra ordinary losses are those lossee which coer hot occus usually and due not due to business Operations. Example :- loss due to earthquake . Hence, from the above statement it is clear that EPS of the company is 3.00 and the remaining income aftor both the dividends will belil,235,960 ( 1,500,960 - 265,000). So the above said amounts will increase (decrease the stained econninge balance as well. CS Scanned with CamScanner