From the following information for the year 2012, prepare an income statement and a statement of shareholders'

Question:

From the following information for the year 2012, prepare an income statement and a statement of shareholders' equity, under GAAP rules, for a company with shareholders' equity at the beginning of 2012 of $3,270 million. Amounts are in millions.

Sales ................................................................................. $4,458

Common dividends paid ..................................................... 140

Selling expenses ................................................................ 1,230

Research and development costs ...................................... 450

Cost of goods sold ............................................................. 3,348

Share issues .......................................................................... 680

Unrealized gain on securities available for sale .................. 76

Income taxes ....................................................................... (200)

Also calculate comprehensive income and net payout. Income taxes are negative. How can this be?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...