Question

Common Stock Instructions Compute the net income for the current year, assuming that there were no entries in the Retained Earn- ings account except for net income and a dividend declaration of $19,000 which was paid in the current year. E4.2 (LO 2, 3) (Compute Income Measures) Presented below is information related to Viel Com- pany at December 31, 2020, the end of its first year of operations. Sales revenue $310,000 Cost of goods sold 140,000 Selling and administrative expenses 50,000 Gain on sale of plant assets 30,000 Unrealized gain on available-for-sale debt investments 10,000 Interest expense 6,000 Loss on discontinued operations 12,000 Dividends declared and paid 5,000

Answer 1

$310,000 $140,000 $170,000 Viel Company Income Statement For The Year Ended December 31st, 2020 Service Revenue Less: Cost of goods sold Gross profit Less: Operating Expenses Selling and administrative expenses Operating Income Other Income and expenses Gain on sale of assets Income before tax and interest Interest expense Income from Continuing operations Loss on discontinued operations Net Income 50,000 120,000 30,000 150,000 6,000 144,000 12,000 $132,000 Note: Unrealised gain on available-for-sale debt investments is part of Other Comprehensive Income for Balance Sheet Dividend declared and paid is shown in statement of stockholders' equity as deduction from Retained Earnings