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Questions 4 -7 (of 7) The tolowing information applies to the questions displaye

ID: 2492217 • Letter: Q

Question

Questions 4 -7 (of 7) The tolowing information applies to the questions displayed below that began as a student project and now is known for its Redbox DVD rental kosks Amourts an in mtions The following information for the for the year ended December 31, 2010 was reported by Constar inc- compeny of dollars Accounts Payable Accounts Receivable Cash (balance on December 31, 2009) Cash (balance on December 31, 2010) $ 350 263 Contributed Capital General and Administrative Expenses 220 Kiosk Expenses Legal Expenses Notes Payable Other Assets Other Liabilities Other Revenues Prepaid Rent Property and Equipment Retained Earnings (beginning) Service Revenue Utilities Expense Wages Payable 620 331 Other cash flow information: Cash outflows for other financing activities Cesh paid for kiosk operations Cash paid to suppliers and employees Repayments of borrowings Cash received from customers Cash received from sale of long-term assets Cash paid to purchase long-term assets Dividends paid in cash 27 919 270 205 4.00 points Required: 1. Prepare an income statement for 2010. (Enter your answers in millions (Le. 10.000,000 should b entered as 10.))

Explanation / Answer

1

COINSTAR INC.

Income statement

For the Year Ended December 31, 2010

(In Millions)

Revenue :

Service Revenue

   1,764

Other Revenue

           1

Total Revenue

   1,765

Expenses:

General and Administrative expenses

      177

Kiosk Expenses

   1,081

Legal Expenses

           9

Total Expenses

   1,267

Net income (Total Revenue - Total Expenses)

      498

2

COINSTAR INC.

Statement of Retained Earnings

For the Year Ended December 31, 2010

(In Millions)

Retained Earnings, January 1, 2010

      167

Add: Net income for the year 2010

      498

Less: Dividends

          -  

Retained Earnings, December 31, 2010

     665

1

COINSTAR INC.

Income statement

For the Year Ended December 31, 2010

(In Millions)

Revenue :

Service Revenue

   1,764

Other Revenue

           1

Total Revenue

   1,765

Expenses:

General and Administrative expenses

      177

Kiosk Expenses

   1,081

Legal Expenses

           9

Total Expenses

   1,267

Net income (Total Revenue - Total Expenses)

      498

2

COINSTAR INC.

Statement of Retained Earnings

For the Year Ended December 31, 2010

(In Millions)

Retained Earnings, January 1, 2010

      167

Add: Net income for the year 2010

      498

Less: Dividends

          -  

Retained Earnings, December 31, 2010

     665