ACG 4101 Chapter 4 HW
1. Which of the following most likely would be classified as restructuring costs? - answer
Severance pay for employee layoffs associated with facility closings
Lucia Limited reported net income of $137,000 for the year ended December 31, 2024.
January 1 balances in accounts receivable and accounts payable were $27,800 and
$27,200, respectively. Year-end balances in these accounts were $32,000 and $23,000,
respectively. Assuming that all relevant information has been presented, Lucia's cash
flows from operating activities would be: - answer$128,600.
27800-32000=4200
27200-23000=4200
137000-8400= $128,600
The Compton Press Company reported income before taxes of $250,000. This amount
included a $50,000 loss on discontinued operations. The amount reported as income
from continuing operations, assuming a tax rate of 25%, is: - answer$225,000
(250,000+50,000) * (1-0.25) = 225,000
Which of the following captions would more likely be found in a multiple-step income
statement? - answerOperating income.
On May 31, 2024, the Arlene Corporation adopted a plan to sell its cosmetics line of
business, considered a component of the entity. The assets of the component were sold
on October 13, 2024, for $1,120,000. The component generated operating income of
$300,000 from January 1, 2024, through disposal. In its income statement for the year
ended December 31, 2024, the company reported before-tax income from operations of
a discontinued component of $620,000. What was the book value of the assets of the
cosmetics component? - answer$800,000
$1,120,000 - 320,000= $800,000
Of the $620,000 pretax income from discontinued operations, $300,000 was from
income from operations. The remaining $320,000 was therefore gain on sale of the
assets. If the assets were sold for $1,120,000, their book value must have been
$800,000.
Capstone Corp. reported $150,000 of comprehensive income for year 8. It also reported
the following:
Beginning retained earnings $300,000
Income tax expense $60,000
, Ending retained earnings $320,000
Cash dividends declared $80,000
Other comprehensive income $50,000
What was Capstone's net income for year 8? - answer100,000
Earnings per share should be reported for each of the following income statement
captions except: - answerOperating income.
Which of the following items would not be included as a cash flow from operating
activities in a statement of cash flows? - answerPurchase of equipment.
Capstone Corp. reported $150,000 of comprehensive income for year 8. It also reported
the following:
Beginning retained earnings$300,000
Income tax expense$60,000
Ending retained earnings $320,000
Cash dividends declared$80,000
Other comprehensive income$50,000
What was Capstone's net income for year 8? - answer$100,000
300,000 retained earinings -80,000 dividens = 220,000
320,000 ending retained earnings - 220,000 = 100,000
Pandora Corporation operates several factories in the Midwest that manufacture
consumer electronics. The December 31, 2024, year-end trial balance contained the
following income statement items:
Account TitleDebitsCreditsSales revenue $ 13,600,000
Interest revenue 61,000
Loss on sale of investments $ 111,000
Cost of goods sold 6,310,000
Selling expenses 631,000
General and administrative expenses 1,630,000
Interest expense 51,000
Research and development expense 1,310,000
Income tax expense 911,000
Required:
Calculate the company's operating income for the year. - answerOperating Revenues:
Sales revenue selected answer correct $13,600,000
Total operating revenue 13,600,000
Less operating expenses:
Cost of goods sold $6,310,000
Selling expensesselected 6,310,000
General and administrative expenses 1,630,000
1. Which of the following most likely would be classified as restructuring costs? - answer
Severance pay for employee layoffs associated with facility closings
Lucia Limited reported net income of $137,000 for the year ended December 31, 2024.
January 1 balances in accounts receivable and accounts payable were $27,800 and
$27,200, respectively. Year-end balances in these accounts were $32,000 and $23,000,
respectively. Assuming that all relevant information has been presented, Lucia's cash
flows from operating activities would be: - answer$128,600.
27800-32000=4200
27200-23000=4200
137000-8400= $128,600
The Compton Press Company reported income before taxes of $250,000. This amount
included a $50,000 loss on discontinued operations. The amount reported as income
from continuing operations, assuming a tax rate of 25%, is: - answer$225,000
(250,000+50,000) * (1-0.25) = 225,000
Which of the following captions would more likely be found in a multiple-step income
statement? - answerOperating income.
On May 31, 2024, the Arlene Corporation adopted a plan to sell its cosmetics line of
business, considered a component of the entity. The assets of the component were sold
on October 13, 2024, for $1,120,000. The component generated operating income of
$300,000 from January 1, 2024, through disposal. In its income statement for the year
ended December 31, 2024, the company reported before-tax income from operations of
a discontinued component of $620,000. What was the book value of the assets of the
cosmetics component? - answer$800,000
$1,120,000 - 320,000= $800,000
Of the $620,000 pretax income from discontinued operations, $300,000 was from
income from operations. The remaining $320,000 was therefore gain on sale of the
assets. If the assets were sold for $1,120,000, their book value must have been
$800,000.
Capstone Corp. reported $150,000 of comprehensive income for year 8. It also reported
the following:
Beginning retained earnings $300,000
Income tax expense $60,000
, Ending retained earnings $320,000
Cash dividends declared $80,000
Other comprehensive income $50,000
What was Capstone's net income for year 8? - answer100,000
Earnings per share should be reported for each of the following income statement
captions except: - answerOperating income.
Which of the following items would not be included as a cash flow from operating
activities in a statement of cash flows? - answerPurchase of equipment.
Capstone Corp. reported $150,000 of comprehensive income for year 8. It also reported
the following:
Beginning retained earnings$300,000
Income tax expense$60,000
Ending retained earnings $320,000
Cash dividends declared$80,000
Other comprehensive income$50,000
What was Capstone's net income for year 8? - answer$100,000
300,000 retained earinings -80,000 dividens = 220,000
320,000 ending retained earnings - 220,000 = 100,000
Pandora Corporation operates several factories in the Midwest that manufacture
consumer electronics. The December 31, 2024, year-end trial balance contained the
following income statement items:
Account TitleDebitsCreditsSales revenue $ 13,600,000
Interest revenue 61,000
Loss on sale of investments $ 111,000
Cost of goods sold 6,310,000
Selling expenses 631,000
General and administrative expenses 1,630,000
Interest expense 51,000
Research and development expense 1,310,000
Income tax expense 911,000
Required:
Calculate the company's operating income for the year. - answerOperating Revenues:
Sales revenue selected answer correct $13,600,000
Total operating revenue 13,600,000
Less operating expenses:
Cost of goods sold $6,310,000
Selling expensesselected 6,310,000
General and administrative expenses 1,630,000
