The following information is related to Flint Company for 2017. Flint Company de
ID: 2587633 • Letter: T
Question
The following information is related to Flint Company for 2017.
Flint Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Flint sold the wholesale operations to Rogers Company. During 2017, there were 463,100 shares of common stock outstanding all year.
1. Prepare a multiple-step income statement.
Retained earnings balance, January 1, 2017 $989,040 Sales Revenue 26,170,900 Cost of goods sold 16,226,200 Interest revenue 77,000 Selling and administrative expenses 4,772,600 Write-off of goodwill 829,100 Income taxes for 2017 1,349,000 Gain on the sale of investments 117,100 Loss due to flood damage 392,900 Loss on the disposition of the wholesale division (net of tax) 455,300 Loss on operations of the wholesale division (net of tax) 93,560 Dividends declared on common stock 225,300 Dividends declared on preferred stock 73,250Explanation / Answer
Multiple Step Income Statement is as prepared below:
Flint Compnay Income Statement For the Year Ending Dec 31, 2017 Sales 26,170,900 Cost of goods sold -16,226,200 Gross Profit 9,944,700 Selling and administration expense 4,772,600 Income from operations 5,172,100 Other revenue Interest Revenue 77,000 Gain on sale of investments 117,100 194,100 Other expense and loss Write off of goodwill 829,100 829,100 Income from continuing operations before income tax 4,537,100 Income tax expense 1,349,000 Income from continuing operations 3,188,100 Discontinued operations: Loss on disposition of wholesale division, net of tax 455,300 Loss on operations of wholesale division, net of tax 93,560 548,860 Income before extraordinary item 2,639,240 Loss due to flood damage 392,900 Net Income 2,246,340 EPS: Income from continuing operations (3,188,100/463,100) 6.88 Income before extraordinary item (2,639,240/463,100) 5.70 Net Income (2,246,340/463,100) 4.85Related Questions
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