Question

Presented below is information related to Splish Company at December 31, 2020, the end of its first year of operations. Sales revenue $334910 Cost of goods sold 149030 Selling and administrative expenses 54000 Gain on sale of plant assets 32710 Unrealized gain on available-for-sale debt investments 9080 Interest expense 6360 Loss on discontinued operations 11260 Dividends declared and paid 4660 Compute the following: (a) Income from operations - (b) Net income - (c) Comprehensive income (d) Retained earnings balance at December 31, 2020 -

Answer 1

334,910 Sales revenue Less: Cost of goods sold Less: Selling and administrative expense Income from operations Add: Gain on sale of plant assets Less: Interest expense Net income Add: Unrealized gain on available-for-sale de Less: Loss on discontinued operations Comprehensive income - 149,030 -54,000 131,880 32,710 -6,360 158,230 9,080 -11,260 156,050 (b) (c) Net income Less: Dividends declared and paid Retained earnings balance at Dec. 31, 2020 158,230 -4,660 153,570 (d)