Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Presented below is information related to Sunland Company at December 31, 2017, the end of its first year of operations.
Sales revenue $327,980
Cost of goods sold 148,580
Selling and administrative expenses 52,100
Gain on sale of plant assets 30,840
Unrealized gain on available-for-sale investments 9,370
Interest expense 6,060
Loss on discontinued operations 11,970
Dividends declared and paid 5,190
Compute the following:
(a) Income from operations $
Entry field with incorrect answer now contains modified data
(b) Net income $
Entry field with correct answer
(c) Comprehensive income $
Entry field with incorrect answer
(d) Retained earnings balance at December 31, 2017 $
Entry field with incorrect answer

Sagot :

Zviko

Answer:

Part a

Income from operations calculation

Sales revenue                                                            $327,980

Less Cost of goods sold                                           ($148,580)

Gross Profit                                                                 $179,400

Less Operating Expenses

Selling and administrative expenses                        ($52,100)

Income from operations                                             $127,300

Part b

Net Income calculation

Income from operations                                                               $127,300

Non-Operating items

Gain on sale of plant assets                                        $30,840

Unrealized gain on available-for-sale investments      $9,370

Interest expense                                                          ($6,060)   $34,150

Net Income                                                                                   $161,450

Part c

Comprehensive income calculation

Net Income (from continuing activities)                   $161,450

Less Loss on discontinued operations                    ($11,970)

Comprehensive income                                           $149,480

Part d

Comprehensive income                                           $149,480

Less Dividends declared and paid                            ($5,190)

Retained Earnings                                                    $144,290

Explanation:

Income from Operations = Sales less Operating Expenses

Net Income = Income from Operations add or less Non Operating items

Comprehensive Income = Income from Continuing Activities + Income from discontinued Activities

Retained Income = Comprehensive Income less Dividends declared and paid.

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.