The operating revenues and expenses of Panawin Enterprises for $2021$ are below:There are four additional transactions that impact the income statement:

Machinery with a balance sheet $($book$)$ value of $$11,000$ was sold for $$9,000.$ The transaction was considered non$-$operating.

A separate line of business $($segment$)$ was sold on March $14,2021,$ for $$18,000$ cash. The balance sheet $($book$)$ value of the segment as of the date of the sale was $$6,000.$ The business segment recognized revenues of $$18,500$ and expenses of $$14,000$ from January $1,2021,$ to March $14,2021.$

The company changed its method of accounting for inventory in line with a new mandated standard. This change increased the ending inventory balance and earnings before taxes as of the end of $2021$ by $$8,000.$

On September $12,2021,$ Panawin retired, before maturity, outstanding bonds with a balance sheet $($book$)$ value of $$123,000$ for a cash payment of $$130,000.$

Assume that income taxes on income from continuing operations are $$3,500,$ the effective income tax rate on other items is $25$ percent, and $10,000$ common shares are outstanding.

Using this information, prepare a complete income statement.Operating revenues $$85,000$ 

Operating expenses $-62,000$

Net operating income $$23,000$

Answer rating: 100% (QA)

Answer Operating revenues 85000 Operating expenses 62... View the full answer