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ACC 356 Study Guide - Net Income, Income Statement, Intangible Asset

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School
Syracuse University
Department
Accounting
Course
ACC 356
Professor
All

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Document Summary

Exercise 4-2 (25 35 minutes) (a) total net revenue: (b) net income: (c) dividends declared: Dividends declared must be ,700 (,700 ,000) Income before income tax and extraordinary item Correction for overstatement of net income in prior period (depreciation error) (net of ,700 tax) Less: provision for preferred dividends (8% of ,500,000) Loss from disposal of recreational division ,000. *computation of income from cont. operations before taxes: Gain on proceeds of life insurance policy (,000 ,000) Note: no adjustment is needed for the inventory method change, since the new method is reported in 2007 income. The cumulative effect on prior years of retroactive application of new inventory method will be recorded in retained earnings. The usual but infrequently occurring charge of ,500,000 should be disclosed separately, assuming it is material. This charge is shown above income before extraordinary items and would not be reported net of tax.

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Related Questions

Revenue: $1, 5000.80

Total Cost: $886, 679.40

Labor Cost: $780, 079.40

Cost of Sales: $ 743, 479. 00

Beginning Inventory: $6, 376

Depreciation: $1, 2975

Interest Rate: 6%

Tax Rate: 34% Dividends:

Dividends: No dividends paid.

Retained Earnings: 0 (new business)

Accounting Expenses: $133, 500

R & D: $ 36, 000

Total Capital Equipment: $55, 454.99

Based on the aforementioned information, calculate thefollowing:

Gross Profit

Cost of Sales

Operating Expenses

Income from Operations

Other Income (Expenses)

Net Income

Deficit

Retained Earnings

Which of the following cannot be answered (if any) without moreinformation? Explain why? What information would you need tocomplete a statement of cash flow?

Presented below are selected ledger accounts of WindsorCorporation as of December 31, 2017.

Cash $55,200
Administrative expenses 102,800
Selling expenses 83,460
Net sales 549,100
Cost of goods sold 263,700
Cash dividends declared (2017) 24,130
Cash dividends paid (2017) 22,300
Discontinued operations (loss before income taxes) 42,900
Depreciation expense, not recorded in 2016 30,600
Retained earnings, December 31, 2016 96,200

Effective tax rate 30%

Prepare a partial income statement beginning with income fromcontinuing operations before income tax, and including appropriateearnings per share information. Assume 21,240 shares of commonstock were outstanding during 2017.


Exercise 12-8 Matthias Medical manufactures hospital beds andother institutional furniture. The company’s comparative balancesheet and income statement for 2012 and 2013 follow. MatthiasMedical Comparative Balance Sheet As of December 31 2013 2012Assets Current assets Cash $393,000 $417,400 Accounts receivable,net 1,077,000 776,450 Inventory 735,000 681,050 Other currentassets 381,400 247,050 Total current assets 2,586,400 2,121,950Property, plant, & equipment, net 8,639,160 8,440,060 Totalassets $11,225,560 $10,562,010 Liabilities and Stockholders’ EquityCurrent liabilities $3,165,000 $2,846,050 Long-term debt 3,702,6003,892,700 Total liabilities 6,867,600 6,738,750 Preferred stock, $5par value 58,950 58,950 Common stock, $0.25 par value 104,650103,850 Retained earnings 4,194,360 3,660,460 Total stockholders’equity 4,357,960 3,823,260 Total liabilities and stockholders’equity $11,225,560 $10,562,010 Matthias Medical Comparative IncomeStatement and Statement of Retained Earnings For the Year 2013 2012Sales revenue (all on account) $10,177,300 $9,613,950 Cost of goodssold 5,612,800 5,298,800 Gross profit 4,564,500 4,315,150 Operatingexpenses 2,840,200 2,634,150 Net operating income 1,724,3001,681,000 Interest expense 300,300 308,700 Net income before taxes1,424,000 1,372,300 Income taxes (30%) 427,200 411,690 Net income$996,800 $960,610 Dividends paid Preferred dividends 29,550 29,550Common dividends 433,350 413,000 Total dividends paid 462,900442,550 Net income retained 533,900 518,060 Retained earnings,beginning of year 3,660,460 3,142,400 Retained earnings, end ofyear $4,194,360 $3,660,460 Calculate the following liquidity ratiosfor 2013. (If working capital is negative then enter with anegative sign preceding the number or parenthesis, e.g. -15,000 or(15,000). Round all answers except working capital to 2 decimalplaces, e.g. 2.55.) a. Working capital $ b. Current ratio c.Acid-test ratio d. Accounts receivable turnover times Calculate thefollowing liquidity ratios for 2013. (Round average collectionperiod to 0 decimal place, e.g. 25 and inventory turnover ratio to2 decimal places, e.g. 5.12. Use 365 days for calculation.) a.Average collection period days b. Inventory turnover timesCalculate average days to sell inventory for 2013. (Round answer to0 decimal places, e.g. 25. Use 365 days for calculation.) Averagedays to sell inventory days