The audit senior has asked you to review the income statement. The audit senior noticed that the
Question:
Compute the company's basic and diluted EPS. Update the log of issues to include this week's topics. Prepare a report for the audit senior, summarizing all of the issues from this week.
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Income Statement of Ross Enterprises for the Year Ended 2008 $20,000,000 Net revenues Cost of goods sold $11,200,000 Gross profit $8,800,000 Selling and administrative expenses $4,320,000 Income from operations $4,480,000 Other revenues and gains $500,000 Interest revenues Other expenses and losses - $50,000 $450,000 Loss on disposal of old equipment Income from continuing operations before $4,930,000 income tax Income tax (at the rate of 40%) $1,972,000 Income from continuing operations $2,958,000 Discontinued operations Income from operations of Bacon $54,000 division, net of Applicable income tax of $36,000 Loss on disposal of Bacon division, less - S1,05,000 -$51,000 Applicable income tax of $70,000 Income before extraordinary item $2,907,000 Extraordinary item – Loss from tomado, less - $222,000 Applicable income tax of $148,000 Net Income $2,685,000
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Auditing The Art and Science of Assurance Engagements
ISBN: 978-0133405507
13th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
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