Wagner Inc. has service revenue of $1,200,000, operating expenses of $720,000, and an unrealized holding loss of $60,000 on debt security investments for the year ended December 31. Its income tax rate is 25%. Required a. Prepare a single continuous statement of comprehensive income. Ignore earnings per share disclosures. • Do not use negative signs with any of your answers. Wagner Inc. Statement of Comprehensive Income For the Year Ended December 31 Service revenue Operating expenses Income before income tax Income tax expense Net income Unrealized holding loss on security investments, net of tax Wagner Inc. Income Statement For the Year Ended December 31 Service revenue Operating expenses Income before income tax Net income Wagner Inc. Statement of Comprehensive Income For the Year Ended December 31 + + Unrealized holding loss on security investments, net of tax Income before income tax Comprehensive income + + + b. Prepare two separate statements of income and comprehensive income. Ignore earnings per share disclosures. • Do not use negative signs with any of your answers. + + + + $ + $ 1,200,000 720,000 480,000 $ $ 0 0 45,000 0 $ 1,200,000 720,000 0 0 0 0 0 0

Wagner Inc. has service revenue of $1,200,000, operating expenses of $720,000, and an unrealized holding loss of $60,000 on debt security investments for the year ended December 31. Its income tax rate is 25%. Required a. Prepare a single continuous statement of comprehensive income. Ignore earnings per share disclosures. • Do not use negative signs with any of your answers. Wagner Inc. Statement of Comprehensive Income For the Year Ended December 31 Service revenue Operating expenses Income before income tax Income tax expense Net income Unrealized holding loss on security investments, net of tax Wagner Inc. Income Statement For the Year Ended December 31 Service revenue Operating expenses Income before income tax Net income Wagner Inc. Statement of Comprehensive Income For the Year Ended December 31 + + Unrealized holding loss on security investments, net of tax Income before income tax Comprehensive income + + + b. Prepare two separate statements of income and comprehensive income. Ignore earnings per share disclosures. • Do not use negative signs with any of your answers. + + + + $ + $ 1,200,000 720,000 480,000 $ $ 0 0 45,000 0 $ 1,200,000 720,000 0 0 0 0 0 0

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...

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An inexperienced accountant for Bramble Corp. showed the following in the income statement: net income $217,260 and unrealized gain on available-for-sale securities (before taxes) $91,900. The unrealized gain on available-for-sale securities is subject to a 29% tax rate.Prepare a correct statement of comprehensive income. BRAMBLE CORP.Partial Statement of Comprehensive Income select a comprehensive income item enter a dollar amount select an opening section name select a comprehensive income item enter a dollar amount select an closing name for this statement $enter a total amount for this statement
The most recent financial statements for Mandy Company are shown here: Balance Sheet $ 11,720 Debt 26,550 Equity Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 19,000 Current assets 12,880 Fixed assets $ 6,120 Internal growth rate 1,285 $4,835 Total Answer is complete but not entirely correct. $ 38,270 16.23 X % Total Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) $15,760 22,510 $38,270
You are considering two possible companies for investment purposes. The following data is available for each company. Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet method is 10%. The $230,000 in Other Expenses includes all company expenses except Bad Debt Expense. Company B: Bad debt estimation percentage using the income statement method is 6.5%, and the balance sheet method is 8%. The $140,000 in Other Expenses includes all company expenses except Bad Debt Expense. A. Compute the number of days sales in receivables ratio for each company for 2019 and interpret the results (round answers to nearest whole number). B. If Company A changed from the income statement method to the balance sheet method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). C. If Company B changed from the balance sheet method to the income statement method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). D. What benefits do each company gain by changing their method of bad debt estimation? E. Which company would you invest in and why? Provide supporting details.
The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Refer to the information for Somerville Company on the previous pages. Also, assume that the price per common share for Somerville is 8.10. Required: Compute the price-earnings ratio. (Note: Round the answer to two decimal places.)
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 20,500 Current assets $ 12,020 Debt $ 16,660 Costs 14,100 Fixed assets 33,300 Equity 28,660 Taxable income $ 6,400 Total $ 45,320 Total $ 45,320 Taxes (21%) 1,344 Net income $ 5,056 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)
Current Attempt in Progress An inexperienced accountant for Ayayai Corp. showed the following in the income statement: net income $187,500 and unrealized gain on available-for-sale securities (before taxes) $85,000. The unrealized gain on available-for-sale securities is subject to a 25% tax rate. Prepare a correct statement of comprehensive income. AYAYAI CORP. Partial Statement of Comprehensive Income Income Before Income Taxes Net Income /(Loss) eTextbook and Media Save for Later ta
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Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.9 Return on assets (ROA) 3% Return on equity (ROE) 5% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Liabilities-to-assets ratio: % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.7 Return on assets (ROA) 2% Return on equity (ROE) 6% Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. % Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. %
The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet Sales $ 20,800 Current assets $ 12,080 Debt $ 16,840 Costs 14,320 Fixed assets 34,650 Equity 29,890 Taxable income $ 6,480 Total $ 46,730 Total $ 46,730 Taxes (25%) 1,620 Net income $ 4,860 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)