From the following information for the year 2009, prepare an income statement and a statement of shareholders ' equity, under GAAP rules, for a company with shareholders ' equity at the beginning of 2009 of $3,270 million Amounts are in millions Sales $4,458 Common dividends paid 140 Selling expens...

Income statement Sales 4458 Cost of good sold 3348 Gross margin 1110 Selling expenses ...

From the following information for the year 2009, prepare an income statement and a statement of shareholders'

Question:

From the following information for the year 2009, prepare an income statement and a statement of shareholders' equity, under rules, for a company with shareholders' equity at the beginning of 2009 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...