Toshiro group Inc is a fast growing global conglomerate. He has hired some bright graduates from EU
Question:
Toshiro group Inc is a fast growing global conglomerate. He has hired some bright graduates from EU to help him modernise the company. He must close his consolidated accounts for December 2019 and do some planning for 2020 so all this can be presented to the board. You have been recruited as a consultant by the CEO at the head office to help him. You are recent graduate from EU Business School. Your first assignment is to help the various finance heads and provide all details in a report. The CEO, Toshiro is very busy and fully expects you to help him get through this busy period and show your deep insights about finance and accounting.
ANNEX 1 - The CEO's questions.
1. QUESTION 1: The income statement below was prepared by a new and inexperienced employee in the accounting department of Toshiro Space Ltd a new California based business venture in the group:
a) Make corrected income statement for the year ended December 31, 2019, include at the bottom of your income statement all appropriate earnings per share figures. Assume that throughout the year the company had outstanding a weighted average of 100,000 shares of a single class of capital stock of par value $1.
b) Make a statement of retained earnings for 2019. (As originally reported, retained earnings at December 31, 2018, amount to $2,000,000.)
Fundamentals of Corporate Finance
ISBN: 978-1118845899
3rd edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates