In 2007, the Damon Company had sales of $600,000; cost of sales of $430,000; interest expense of $12,000; a gain on the sale of a component of $12,000; and an extraordinary loss of $20,000. For its income statement, Damon uses the single-step format and the all-inclusive concept. What was Damon's reported pretax income from continuing operations? a. $150,000 b. $170,000 c. $158,000 d. $138,000

In 2007, the Damon Company had sales of $600,000; cost of sales of $430,000; interest expense of $12,000; a gain on the sale of a component of $12,000; and an extraordinary loss of $20,000. For its income statement, Damon uses the single-step format and the all-inclusive concept. What was Damon's reported pretax income from continuing operations? a. $150,000 b. $170,000 c. $158,000 d. $138,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

See similar textbooks

Similar questions

You are given the following information for Sookie’s Cookies Co.: sales = $60000; costs = $37400; addition to retained earnings = $3100; dividends paid = $860; interest expense = $2050; tax rate = 39 percent. Calculate the depreciation expense for the company. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Helo Company has provided the following data: Sales, P5,000,000; Interest expense, P30,000; Total assets, beginning of the year, P185,000; Total assets, end of the year, P215,000; Return on assets, 15.5%; Tax rate, 30%. What is the net income of Helo Co.? show solutions
Arshadi Corp.'s sales last year were $49,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO)? Select the correct answer. a. 3.03 b. 0.63 c. 1.43 d. 3.83 e. 2.23
Suppose in its 2017 annual report that McDonald's Corporation reports beginning total assets of $29.90 billion, ending total assets of $32.25 billion, net sales of $22.60 billion, and net income of $4.80 billion. (a) Compute McDonald's return on assets. (Round return on assets to 2 decimal places, e.g. 5.12%.) McDonald's return on assets % (b) Compute McDonald's asset turnover. (Round asset turnover to 2 decimal places, e.g. 5.12.) McDonald's asset turnover times
Peyton's Palace has net income of $13.4 million on sales revenue of $114 million. Total assets were $80 million at the beginning of the year and $88 million at the end of the year. Calculate Peyton's return on assets, profit margin, and asset turnover ratios. (Enter your answers in millions. (i.e., $5,500,000 should be entered as 5.5).) Return on Assets Numerator/Denominator Amounts Peyton's Palace % Profit Margin Numerator/Denominator Amounts Peyton's Palace % Asset Turnover Numerator/Denominator Amounts Peyton's Palace times
Laflamme Inc. had the following operating results for 2018: sales $30,660; cost of goods sold = $20.260, depreciation expense = $5,660: interest expense = $3.090; dividends paid = $1,950. At the beginning of the year, net fixed assets were $17,480, current assets were $5.960, and current liabilities were $3.575. At the end of the year, net fixed assets were $21,160, current assets were $7,180, and current liabilities were $4,100. The tax rate for 2018 was 30 %. a. What is net income for 2018? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.) Net income b. What is the operating cash flow for 2018? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.) Operating cash flow c. What is the cash flow from assets for 2018? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) Cash flow from assets d. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash…
During the year, Pharr Corporation had sales of $459,000. Costs were $388,000 and depreciation expense was $102,800. In addition, the company had an interest expense of $79.250 and a tax rate of 21 percent. What is the operating cash flow for the year? Ignore any tax loss carry-forward provisions. Multiple Choice $72,733 $77,768 O $15,071
Net Income and OCF During the year, BelykPaving Co. had sales of $2,600,000.Cost of goods sold.administrative and sellingexpenses,and depreciationexpense were $1,535,000，$465,000，and $520.000respectively. In addition,the company had an interesexpense of $245,000 and a tax rate of 35 percent. (lgnoreany tax loss carryback or carryforward provisions.忽略税收)a. What is the company's net income?b. What is its operating cash flow?c.Explain your results in parts (a) and (b).
Use the following selected 2016 balance sheet and income statement information for Home Garden Supply Co. (in millions) to compute asset turnover (AT) to the nearest hundredth of a percent. Net income Gross profit on sales Average total assets Sales Tax rate on operating profit $69,960 $700,400 $360,600 $1,356,504 35% Question 24 options: A) 3.76 B) 5.17 C) 0.27 D) 17.30
Use the information below to answer the questions below. Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) 2015 2014 Total sales 610.1 578.3 Cost of sales (500.2) (481.9) Gross profit 109.9 96.4 Selling, general, and administrative expenses (40.5) (39.0) Research and development (24.6) (22.8) Depreciation and amortization (3.6) (3.3) Operating income 41.2 31.3 Other income --- --- Earnings before interest and taxes (EBIT) 41.2 31.3 Interest income (expense) (25.1) (15.8) Pretax income 16.1 15.5 Taxes (5.5) (5.3) Net income 10.6 10.2 Price per share $16 $15 Shares outstanding (millions) 10.2 8.0 Stock options outstanding (millions) 0.3 0.2 Shareholders' Equity 126.6 63.6 Total Liabilities…
Constantine Corporation has net income of P11.44 million and net revenue of P80 million in 2012. Its assets are P14 million at the beginning of the year and P18 million at the end of the year. What are Constantine’s asset turnover and profit margin? * Choose
At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,100.00 Operating costs excluding depreciation 3,015.00 EBITDA $1,085.00 Depreciation 350.00 EBIT $735.00 Interest 170.00 EBT $565.00 Taxes (40%) 226.00 Net income $339.00 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.1 billion in sales generated last year. Year-end operating costs, excluding depreciation, will equal 70% of sales. Depreciation costs are expected to increase at the same rate as sales. Interest costs are expected to remain unchanged. The tax rate is expected to remain at 40%. On the basis of this information, what will be the forecast for Edwin's year-end net income? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Enter all values as positive numbers. Do not round intermediate calculations. Round…