Taylor Company uses a periodic inventory system and presents the following items derived from its December 31, 2016, adjusted trial balance:
The following information is also available for 2016 and is not reflected in the preceding accounts:
1. The common stock has been outstanding for the entire year. A cash dividend of $0.84 per share was declared and paid.
2. The income tax rate on all items of income is 30%.
3. The ending merchandise inventory is $27,300.
4. A pretax $4,000 loss was recognized on the sale of Division X (a component of the company). This division had earned a pretax operating income of $1,900 during 2016.
5. Damaged inventory was written off at a pretax loss of $6,600.
6. An earthquake, which is unusual in the area, caused a $3,700 pretax loss.
1. Prepare a cost of goods sold schedule for Taylor.
2. Prepare a 2016 single-step income statement.
3. Prepare a 2016 retained earnings statement.
4. Compute the 2016 net profit margin (Net Income / Net Sales).

  • CreatedOctober 05, 2015
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