g income statement items appeared on the adjusted trial balance of Foxworthy Cor
ID: 2408933 • Letter: G
Question
g income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2018 (S in 000s): sales revenue, $23,200, cost of goods sold, $14,950, selling expenses, $2.390, general and administrative expenses, $1,290, dividend revenue from investments, $290 interest expense, $390. Income taxes have not yet been accru company's income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the company's i statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2018 (S in 000s). All transactions are material in amount ncome 1. Investments were sold during the year at a loss of $390. Foxworthy also had unrealized holding losses of $290 for the year orn investments 2 One of the company's factories was closed during the year. Restructuring costs incurred were $2,900 3 During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $890 in 2018 prior to the sale, and its assets were sold at a loss of $1,620 4. A positive foreign currency translation adjustment for the year totaled $510 Required: Prepare Foxworthy's single, continuous statement of comprehensive income for 2018, including earnings per share disclosures. Use a multiple-step income statement format. Two million shares of common stock were outstanding throughout the year. (Enter your answers in thousands of dollars, except eernings per share. Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places)Explanation / Answer
Combined satement of Income and comprehensive income: ($in000) Details Amount Amount 1. Sales Revenue $23,200 2. Cost of goods sold $14,950 3. Gross profit [1 -2] $8,250 4. General Administrative expenses $1,290 5. Sales expenses $2,390 $3,680 6. Net profit from operating activities: $4,570 7. Interest Income $290 8. Iterest expenses $390 9. Net interest expenses ($100) 10. Net adjusted profit [6+9] $4,470 11. Tax @40% $1,788 12.Net adjusted profit after tax [10-11] $2,682 13. Other comprehensive income: Net Investment gain/Loss (-390-290) ($680) Restructuring cost ($290) Net gain from sale of operating div. ($890-1620) ($730) Foreign excage Gain $510 Net comprehensive loss ($900) Tax on comprehesive income @40% $360 Net after tax comprehensive income $2,142 Profit available for equity shareholder [12+13] $1,782 Number of shares at the beginining of the year 2,000,000 Earning per share $0.89
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