2 3 Windmoore'a income statement for the year ended December 31, 2019 as follows: 4 5...

  

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2 3 Windmoore'a income statement for the year ended December 31, 2019 as follows: 4 5 Net Sales Less: Cost of Merchandise Sold 7 Gross Profit s Other Expenses: 9 Selling Expenses 10 Administrative Expenses 11 Operating Income 12 Other Income: 13 Interest Income 14 Estimated gain on sale of assets 15 from discontinued operations 16 Income before tax 17 Less: Income Tax 18 Net Income D 22 "On November 1, 2019 Windmoore adopted a plan to discontinue one of it's divisions, which 23 qualifes as a separate component of the business. The disposal of the divison is expected 24 to be concluded on March 1, 2020. On Deceber 31, 2019 the book value of the 25 discontinued divison was $5,000,000. On that date, the fair market value of those assets 26 was $5,690,000. 27 25 Earnings Per Share assuming 800,000 shares outstanding 29 Common Stock. Assume Windmore had only one class 30 of Common Stock. C 31 32 The discontinued division's Results of Operations were included in the income statement above. D $ $ 1,100,000 650,000 $1,750,000 $ 1,712,166 8,500 $ 10,462,166 7,000,000 $ 3,462,166 690,000 $ 25% $ $ $ 698,500 2,410,666 602,667 1,808,000 2.26 Included below is the results of operations for the discontinued divison(only) G 35 36 37 Net Sales 38 Less: Cost of Merchandise Sold 39 Gross Profit 40 Other Expenses: 41 Selling Expenses 42 Administrative Expenses 43 Results of Discontinued Operations: 45 1. Prepare the corrected multiple step income statements, including EPS amounts. 46 Make sure to list all of the appropriate titles in the correct places. 47 The "Discontinued Operations example video in Module 4 should be some assistance. (Show your income statement on the work paper provided). $ $3,000,000 3,700,000 (700,000) $ 550,000 350,000 $ 900,000 $ (1,600,000) 6 7 Operating Expenses: 9 10 11 Operating Income 13 14 Less: Tax 15 16 17 18 20 Net Income 88588X 30 S 20 Net Income 21 22 23 24 Earnings Per Share assuming 800,000 shares outstanding 25 Common Stock 25 Income from ContinuingOperations 27 Loss on Discontinued Operations 21 Corrected Income Statement 25% $ 25% $ $ 0.00 2 3 Windmoore'a income statement for the year ended December 31, 2019 as follows: 4 5 Net Sales Less: Cost of Merchandise Sold 7 Gross Profit s Other Expenses: 9 Selling Expenses 10 Administrative Expenses 11 Operating Income 12 Other Income: 13 Interest Income 14 Estimated gain on sale of assets 15 from discontinued operations 16 Income before tax 17 Less: Income Tax 18 Net Income D 22 "On November 1, 2019 Windmoore adopted a plan to discontinue one of it's divisions, which 23 qualifes as a separate component of the business. The disposal of the divison is expected 24 to be concluded on March 1, 2020. On Deceber 31, 2019 the book value of the 25 discontinued divison was $5,000,000. On that date, the fair market value of those assets 26 was $5,690,000. 27 25 Earnings Per Share assuming 800,000 shares outstanding 29 Common Stock. Assume Windmore had only one class 30 of Common Stock. C 31 32 The discontinued division's Results of Operations were included in the income statement above. D $ $ 1,100,000 650,000 $1,750,000 $ 1,712,166 8,500 $ 10,462,166 7,000,000 $ 3,462,166 690,000 $ 25% $ $ $ 698,500 2,410,666 602,667 1,808,000 2.26 Included below is the results of operations for the discontinued divison(only) G 35 36 37 Net Sales 38 Less: Cost of Merchandise Sold 39 Gross Profit 40 Other Expenses: 41 Selling Expenses 42 Administrative Expenses 43 Results of Discontinued Operations: 45 1. Prepare the corrected multiple step income statements, including EPS amounts. 46 Make sure to list all of the appropriate titles in the correct places. 47 The "Discontinued Operations example video in Module 4 should be some assistance. (Show your income statement on the work paper provided). $ $3,000,000 3,700,000 (700,000) $ 550,000 350,000 $ 900,000 $ (1,600,000) 6 7 Operating Expenses: 9 10 11 Operating Income 13 14 Less: Tax 15 16 17 18 20 Net Income 88588X 30 S 20 Net Income 21 22 23 24 Earnings Per Share assuming 800,000 shares outstanding 25 Common Stock 25 Income from ContinuingOperations 27 Loss on Discontinued Operations 21 Corrected Income Statement 25% $ 25% $ $ 0.00

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To prepare the corrected multiplestep income statements including EPS amounts from the provided information we should follow the typical structure of ... View the full answer