1) Presented below are selected ledger accounts of Bridgeport Corporation as of
ID: 2565377 • Letter: 1
Question
1) Presented below are selected ledger accounts of Bridgeport Corporation as of December 31, 2017.
Effective tax rate 30%
1) Compute Net Income for 2017
Net income= $________
2)Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 20,810 shares of common stock were outstanding during 2017. (Round earnings per share to 2 decimal places, e.g. 1.58.)
Cash $60,400 Administrative expenses 101,200 Selling expenses 82,920 Net sales 553,300 Cost of goods sold 261,600 Cash dividends declared (2017) 23,330 Cash dividends paid (2017) 23,900 Discontinued operations (loss before income taxes) 47,700 Depreciation expense, not recorded in 2016 38,600 Retained earnings, December 31, 2016 94,760Effective tax rate 30%
1) Compute Net Income for 2017
Net income= $________
2)Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 20,810 shares of common stock were outstanding during 2017. (Round earnings per share to 2 decimal places, e.g. 1.58.)
Explanation / Answer
Particulars Amount Amount Net sales 553300 Less cost of goods sold 261600 Administrative expenses 101200 Selling expenses 82920 Discontinued operations loss 47700 493420 Income befor income tax 59880 income tax @30% 17964 net income 41916 Income from continuing operations before income tax (59880+47700) 107580 less income tax 32274 income from continuous operations 75306 Discontinued operations 47700 less income tax 14310 Loss from discontinued operation after tax 33390 net income 41916 Earnings per share ( net income/ no of shares) 41916/20810 2.01
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