Assume that Lincoln Company’s chief financial officer gave you the following information: net sales, $720,000; cost of goods sold, $350,000; loss from discontinued operations (net of income tax benefit of $70,000), $200,000; loss on disposal of discontinued operations (net of income tax benefit of $16,000), $50,000; operating expenses, $130,000; income taxes expense on continuing operations, $60,000. From this information, prepare the company’s income statement for the year ended June 30, 2012.
Answer to relevant QuestionsUsing 2011 as the base year, prepare a trend analysis for the following data and tell whether the results suggest a favorable or unfavorable trend. (Round your answers to one decimalplace.)Using the information for Otis, Inc., in SE 6 and SE 7, compute the debt to equity ratio, return on equity, and the interest coverage ratio for 2011 and 2012. In 2010, total stockholders’ equity was $60,000. Comment on the ...An investor is trying to decide whether to invest in the long-term bonds and common stock of Mayer Company and Matthews Company. Both companies operate in the same industry. Both also pay a dividend per share of $8 and have ...Cozy Corporation, a clothing retailer, engaged in the transactions listed in the first column of the table that follows. Opposite each transaction is a ratio and space to mark the effect of each transaction on the ...Vira Corporation buys 100 percent ownership of Ferguson Corporation for $100,000. At the time of the purchase, Ferguson’s stockholders’ equity consisted of $20,000 in common stock and $80,000 in retained earnings. ...
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