Exercise 4-2 Your answer is partially correct. Try again Presented below is info

ID: 2342990 • Letter: E

Question

Exercise 4-2 Your answer is partially correct. Try again Presented below is information related to Shamrock Company at December 31, 2017, the end of its first year of operations Sales revenue Cost of goods sold Selling and administrative expenses Gain on sale of plant assets Unrealized gain on available-for-sale investments Interest expense Loss on discontinued operations Dividends declared and paid $289,090 141,730 52,600 28,020 9,100 6,190 11,550 4,600 Compute the following: (a) Income from operations 94,760 (b) Net income 105,090 (c) Comprehensive income 114,190 (d) Retained earnings balance at December 31, 2017 100,490

Explanation / Answer

Answer

---Figures within “( )” denote amount to be deducted

Sample Income Statement

Sales Revenue

$ 289,090.00

Cost of Goods Sold

$ (141,730.00)

Selling & Admin expenses

$ (52,600.00)

Income from Operations

$ 94,760.00

Interest expenses

$ (6,190.00)

Net Income

$ 88,570.00

Gain on sale of assets

$ 28,020.00

Unrealized Gain

$ 9,100.00

Loss on Discontinued Operations

$ (11,550.00)

Comprehensive Income

$ 114,140.00

Statement of Retained earnings

Beginning Balance

$ -

Net Income

$ 88,570.00

Dividend declared & Paid

$ (4,600.00)

Retained Earnings balance at Dec 31, 2017

$ 83,970.00

Income from Operations

$ 94,760.00