Chang Company reported the following for the year ended December 31, 2018:

Gross sales revenue $750,000

Sales returns $ 30,000

Cost of goods sold $250,000

Selling and administrative expenses $100,000

Gain on disposal of the battery division; considered a discontinued operation $ 20,000

Loss from operations of the battery division $ 60,000

Interest expense $ 40,000

Gain on the sale of a fixed asset $ 10,000

Assume Chang’s income tax rate was 20% on all items. Also assume Chang had 140,000 shares of common stock outstanding throughout 2018.

Prepare Chang’s income statement in good form for the year ended December 31, 2018. Round any earnings per share figures to the nearest penny. The definition of “good form” includes, but is not limited to, showing $ signs when appropriate, showing underlines when appropriate, and showing double underlines when appropriate. You can use illustration 4.8 in your textbook as an example of “good form” in income statement preparation.

Expert Solution

Chang Company Income statement for the year ended December 31, 2018
Sales revenue	750000
less:sales return	-30000
Net sales revenue		720000
less:cost of goods sold		(250000)
Gross margin		470000
less: Selling and administrative expenses		(100000)
Income from operations		370000
Other income /(expenses)
Interest expense	(40000)
Gain on sale of fixed asset	10000
Total other income /(expenses)		(30000)
Income from continuing operations before tax		340000
Less:Income tax expense (340000*20%)		(68000)
Income from continuing operations		272000
Discontinued operations
Gain on disposal of the battery division ,net of tax (20000*(1-.20)]	16000
Loss from operations of the battery division net of tax (-60000(1-.20)]	(48000)
Income from discontinued operations		(32000)
Net income		240000
Earning per share
Income from continuing operations[272000/140000]		1.94
Income from discontinued operations [-32000/140000]		(.23)
Net income		1.71

ekkarill92 answered 1 year ago

The income statement of Packer Inc. for the year ended December 31, 2018, reported the following...

The income statement of Packer Inc. for the year ended December 31, 2018, reported the following condensed information: Revenue from fees..................................... $585,000 Operating expenses................................... 340,000 Income from operations.............................. 245,000 Income tax expense................................... 61,250 Net income................................................. $183,750 Packer's statement of financial position contained the following comparative data at December 31: 2018 2017 Accounts receivable................................... $52,500 $45,000 Accounts payable....................................... 34,000 41,000 Income taxes payable................................. 5,500 3,000 The corporation has no depreciable assets. Accounts payable pertain to operating expenses. Instructions: Using the direct...

96. The Dunlop Corporation reported basic EPS of $3.50 for the year ended December 31, 2018;...

96. The Dunlop Corporation reported basic EPS of $3.50 for the year ended December 31, 2018; the denominator used in the basic EPS calculation was 360,000 shares. Dunlop’s marginal income tax rate is 40%. Dunlap had the following convertible securities outstanding during the entire year: 8% convertible preferred stock with a total par value of $1,000,000; the preferred stock is convertible into 22,000 shares of common stock. 10% convertible bonds with a total par value of $6,000,000; the convertible bonds...

) York Company reported the following results for the year ended December 31, 2021, its first...

) York Company reported the following results for the year ended December 31, 2021, its first year of operations: 2021 Income (per books before income taxes) $ 1,800,000 Taxable income 3,400,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2022. What should York record as a net deferred tax asset or liability for the year ended December 31, 2021, assuming that the enacted tax rates in effect...

In its income statement for the year ended December 31, 2017, Ivanhoe Company reported the following...

In its income statement for the year ended December 31, 2017, Ivanhoe Company reported the following condensed data. Salaries and wages expenses $558,000 Loss on disposal of plant assets $ 100,200 Cost of goods sold 1,184,400 Sales revenue 2,652,000 Interest expense 85,200 Income tax expense 30,000 Interest revenue 78,000 Sales discounts 192,000 Depreciation expense 372,000 Utilities expense 132,000 (a) Prepare a multiple-step income statement. (List other revenues before other expenses.) IVANHOE COMPANY Income Statement For the Month Ended December 31,...

For the year ended December 31, 2018, Martin Marietta Manufacturing Company has the following information: ...

For the year ended December 31, 2018, Martin Marietta Manufacturing Company has the following information: Work In Process Inventory, December 31 $ 30,000 Finished Goods Inventory, December 31 55,000 Raw Materials Inventory, December 31 28,000 Raw Materials purchases 36,000 Factory supervisory salaries 6,000 Operating expenses 47,000 Factory depreciation expense 2,000 Factory utilities expense 4,000 Direct labor 30,000 Indirect labor 10,000 Sales revenue 230,000 Sales discounts 5,000 ...

Aardvark Company sells merchandise only on credit. For the year ended December 31, 2018, the following...

Aardvark Company sells merchandise only on credit. For the year ended December 31, 2018, the following data are available: Sales (all on credit) $1,200,000 Accounts Receivable, January 1, 2018 225,000 Allowance for doubtful accounts, January 1, 2018 (credit) 15,000 Cash collections on A/R during 2018 1,050,000 Accounts written off as uncollected (default) during 2018 10,000 Determine the balance of Accounts Receivable at December 31, 2018. Assume that the company estimates bad debts at 2% of credit sales. What amount...

Following is information from Kaitlyn Company for the year ended December 31, 2018. Direct labor $...

Following is information from Kaitlyn Company for the year ended December 31, 2018. Direct labor $ 90,000 Operating and administrative expenses (costs) of sales ???? Net sales $ 520,000 Initial Inventories (None) Direct Material Inventory-December 31, 2018 $ 55,000 Inventory of Work in process-December 31, 2018 $ 30,000 Inventory of finished goods- December 31, 2018 $ 4,000 Purchase of direct material ??? Direct material used $ 53,000 Indirect manufacturing costs ??? Total manufacturing costs incurred (in this period) ??? Cost...

For the year ended December 31, 2018, Southern Atlantic Distributors reported pretax accounting income of $975,000....

For the year ended December 31, 2018, Southern Atlantic Distributors reported pretax accounting income of $975,000. Selected information for 2018 from Southern Atlantic Distributors’ records follows: Interest income on municipal bonds (tax-free income) $35,000 Insurance expense representing 25% of a $180,000, $45,000 4-year insurance policy that was deducted for tax purposes in 2018 when it was purchased. The policy expires at the end of 2021. Rental revenue reported in the income statement, which $75,000 does not include an additional $25,000...

Labels: Current assets Current liabilities December 31, 2018 Expenses For the Year Ended December 31, 2018...

Labels: Current assets Current liabilities December 31, 2018 Expenses For the Year Ended December 31, 2018 Property, plant, and equipment Revenues Amount Descriptions: Book value-building Book value-equipment Change in retained earnings Net income Net loss Retained earnings, December 31, 2018 Retained earnings, January 1, 2018 Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders’ equity Total property, plant, and equipment Total revenues Total stockholders’ equity CHART OF ACCOUNTS Lamp Light Company General Ledger ASSETS 11 Cash...

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2018...

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2018 ($ in 000s): Net sales $ 31,000 Cost of goods sold $ 17,000 Interest income 330 Selling and administrative expenses 3,800 Interest expense 610 Restructuring costs 2,100 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.9 million and a gain on disposal of the component’s assets of $4.6 million. 600,000 shares...

Question