Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Chapter 2, Problem 2.12E
Net income and dividends
The income statement of a corporation for the month of February indicates a net income of $32,000.
During the same period, $40,000 in cash dividends were paid.
Would it be correct to say that the business Incurred a net loss of $8000 during the month? Discuss.
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Students have asked these similar questions
Goldfinger Corporation had account balances at the end of the current year as follows:
sales revenue, $29,000; cost of goods sold, $12,000; operating expenses, $6,200; and
income tax expense, $4,320. Assume shareholders owned 4,000 shares of Goldfinger's
common stock during the year. Prepare Goldfinger's income statement for the current year.
Income Statement
Goldfinger Corporation had account balances at the end of the current year as follows: sales revenue, $13,600; cost of goods sold, $8,300; operating expenses, $3,200; and income tax expense, $630. Assume
shareholders owned 500 shares of Goldfinger's common stock during the year.
Prepare Goldfinger's income statement for the current year.
GOLDFINGER CORPORATION
Income Statement
For the Year Ended December 31, Current Year
Sales revenue
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $51,900; total assets, $219,400; common stock, $81,000; and retained earnings, $34,953.)
CABOT CORPORATION
Balance Sheet
December 31 of current year
Assets
Liabilities and Equity
Cash
$ 12,000
Accounts payable
$ 16,500
Short-term investments
9,000
Accrued wages payable
3,800
Accounts receivable, net
33,200
Income taxes payable
4,700
Merchandise inventory
36,150
Long-term note payable, secured by mortgage on plant assets
71,400
Prepaid expenses
2,800
Common stock
81,000
Plant assets, net
151,300
Retained earnings
67,050
Total assets
$ 244,450
Total liabilities and equity
$ 244,450
CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales
$ 455,600
Cost of goods sold
298,050
Gross profit
157,550
Operating expenses
99,500
Interest expense…
Chapter 2 Solutions
Survey of Accounting (Accounting I)
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