Use the following income-related items to create a multistep income statement for 2022 including EPS disclosures .
Question:
- Use the following income-related items to create a multistep income statement for 2022 including EPS disclosures. Assume a 20% tax rate (all amounts listed in thousands and pretax).
Cost of goods sold | 1,400 | Impairment of patent used in continuing operations | 170 |
Dividend revenue from equity securities | 70 | Other selling, general and administrative expenses | 300 |
Sales revenue | 3,250 | Interest expense | 100 |
Unrealized gain on trading securities | 40 | Research and development | 150 |
Interest revenue | 20 | Gain on sale of fixed asset | 30 |
Depreciation and amortization | 350 | Restructuring costs | 200 |
Salary and wage expense | 300 | Insurance expense | 25 |
Utilities expense | 10 | Bad debt expense | 15 |
In addition, the following information is available regarding a division the company decided to discontinue (all amounts in thousands).
Book value of assets | $5,100 | Book value of liabilities | $2,700 |
Fair value of assets | $3,190 | Fair value of liabilities | $1,700 |
Estimated selling costs | $200 | Profit from operations of the division | $150 |
The company declared $300,000 of preferred dividends and had 1,000,000 shares of common stock outstanding throughout 2020.
- Assuming the company in #1 above had a credit balance in its retained earnings account of $3,120,000, determine retained earnings at year-end.
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby