help Required information[The following information applies to the questions displayed below.]The income statement for Pruitt Company summarized for a four-year period shows the following:2016$ 2,027,0001,492,000535,000473,00062,00021,7002017$ 2,451,0001,616,000835,000505,000330,000115,5002018$ 2,704,000000 ,70ר.1934,000519,000415,000145,2502019$ 2,979,0002,101,000878,000537,000341,000119,350221,650Sales revenueCost of goods soldGross profitExpensesPretax incomeIncome tax expense (358)Net income40,300214,500269,750An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $27,000. Thecompany uses a periodic inventory system.Required:1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error.PRUITT COMPANYIncome StatementFor the Four-Year Period2016201720182019Sales revenueCost of goods soldGross profitExpensesPretax incomeIncome tax expense (35%)Net income

Overstatement of ending inventory will reduce the cost of goods sold and also increase the opening…

Answered: Required: 1. Prepare the income…

Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.) The income statement for Pruitt Company summarized for a four-year period shows the following: Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income 2016 $2,032,000 2017 $2,464,000 2018 $2,704,000 2019 $2,988,000 1,497,000 1,622,000 1,776,000 2,097,000 535,000 842,000 928,000 891,000 486,000 496,000 523,000 529,000 49,000 346,000 405,000 362,000 14,700 103,800 121,500 108,600 $34,300 $242,200 $283,500 $253,400 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $27,000. The company uses a periodic inventory system. Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 2018 2019 亞

Randall Corporation reported the following revenue data:Year Net revenues (in millions)$$$$6,8007,0046,7327,2762016201720182019Use 2016 as the base year. The trend percentage in 2019 is closest toa. 93%.b. 104%.c. 107%.d. 112%
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Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $ 3,900.0 $ 3,000.0 Operating costs excluding depreciation and amortization 2,925.0 2,550.0 EBITDA $ 975.0 $ 450.0 Depreciation and amortization 90.0 69.0 Earnings before interest and taxes (EBIT) $ 885.0 $ 381.0 Interest 86.0 66.0 Earnings before taxes (EBT) $ 799.0 $ 315.0 Taxes (40%) 319.6 126.0 Net income $ 479.4 $ 189.0 Common dividends $ 431.0 $ 151.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents $ 38.0 $ 30.0 Accounts receivable 432.0 360.0 Inventories 819.0 630.0 Total current assets $ 1,289.0 $ 1,020.0 Net plant and equipment 897.0 690.0 Total assets $ 2,186.0 $ 1,710.0 Liabilities and Equity…
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $ 1,800.0 $ 1,500.0 Operating costs excluding depreciation and amortization 1,395.0 1,275.0 EBITDA $ 405.0 $ 225.0 Depreciation and amortization 43.0 39.0 Earnings before interest and taxes (EBIT) $ 362.0 $ 186.0 Interest 40.0 33.0 Earnings before taxes (EBT) $ 322.0 $ 153.0 Taxes (40%) 128.8 61.2 Net income $ 193.2 $ 91.8 Common dividends $ 174.0 $ 73.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents $ 23.0 $ 18.0 Accounts receivable 248.0 225.0 Inventories 396.0 360.0 Total current assets $ 667.0 $ 603.0 Net plant and equipment 429.0 390.0 Total assets $ 1,096.0 $ 993.0 Liabilities and Equity Accounts…
Given the historical income statement of Mega Trade Inc., how much would be added to the company's retained earning for the year 2016 (in millions)? Income Statement ( $ Million) Year End 2015 2016 2017 2019 Sales 1, 234.90 1,251.70 1,300.40 1,334.40 Cost of Sales -679.1 -659 -681.3 -667 Gross Operating Income Selling & Administration -339.7 -348.6 -351.2 -373.3 Depreciation -47.5 -52 -55.9 -75.2 Other Income / Expenses 11.8 7.6 7 8.2 Earnings Before Interest and Taxes Interest Income 1.3 1.4 1.7 2 Interest Expense -16.2 -15.1 -20.5 -23.7 Pre Tax Income Income Taxes -56.8 -64.2 -67.5 -72.6 Net Income Dividends -38.3 -38.7 -39.8 -40.1
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 Sales $ 1,625.0 $ 2017 1,300.0 Operating costs excluding depreciation and amortization 1,300.0 1,105.0 EBITDA $ 325.0 $ 195.0 Depreciation and amortization 39.0 31.0 Earnings before interest and taxes (EBIT) $ 286.0 $ 164.0 Interest 36.0 29.0 Earnings before taxes (EBT) $ 250.0 $ 135.0 Taxes (40%) 100.0 54.0 Net income $ 150.0 $ 81.0 Common dividends $ 135.0 $ 65.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 Assets Cash and equivalents $ 23.0 $ 2017 18.0 Accounts receivable 164.0 143.0 Inventories 343.0 312.0 Total current assets $ 530.0 $ 473.0 Net plant and equipment 390.0 312.0 Total assets $ 920.0 $ 785.0 Liabilities and Equity…
Financial Information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2020 $2,500.0 2,125.0 $375.0 75.0 $300.0 55.0 $ 245.0 98.0 $147.0 $152.1 $117.6 Common dividends Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2020 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (25%) Net Income Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 2021: $ b. What was the 2021 free cash flow? 2021 $2,875.0 2,444.0 $ 431.0 86.0 $345.0 63.3 $281.7 112.7 $ 169.0 $ -Select- 2021 46.0 450.0 540.0 $1,036.0 863.0 $1,899.0 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities $601.5 Long-term bonds 575.0 Total liabilities $1,176.5 661.5 Common…
Given the historical income statement of Mega Trade Inc., how much would be added to the company's retained earning for the year 2016 (in millions)? Income Statement ($ Million) Income Statement ( $ Million) Year End 2015 2016 2017 2019 Sales 1, 234,90 1,251.40 1,300.40 1,334.40 Cost of Sales -679.1 -659 -681.3 -667 Gross Operating Income Selling & Administration -339.7 -348.6 -351.2 -373.3 Depreciation -47.5 -52 -55.9 -75.2 Other Income / Expenses 11.8 7.6 7 8.2 Earnings Before Interest and Taxes Interest Income 1.3 1.4 1.7 2 Interest Expense -16.2 -15.1 -20.5 -23.7 Pre Tax Income Income Taxes -56.8 -64.2 -67.5 -72.6 Net Income Dividends -38.3 -38.7 -39.8 -40.1
The comparative condensed income statements of Emley Corporation are shown below. EMLEY CORPORATIONComparative Condensed Income StatementsFor the Years Ended December 31 2017 2016 Net sales $726,000 $661,000 Cost of goods sold 531,300 462,000 Gross profit 194,700 199,000 Operating expenses 137,500 132,000 Net income $ 57,200 $ 67,000 (a)Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.) EMLEY CORPORATIONCondensed Income Statements Increase or (Decrease)During 2017 2017 2016 Amount Percentage Net sales $726,000 $661,000 $ % Cost of goods sold 531,300 462,000 % Gross profit…
The income statement of Tavis Corporation and selected additional data are presented below: Tavis Corporation Income Statement for the Year Ended December 31, 2020 Net sales $220,000 Cost of goods sold __109,000 Gross profit 111,000 Selling and general expenses _98,000 Income from operations 13,000 Interest expense __2,500 Income before income tax 10,500 Income tax expense __3,000 Net income $ 7,500 Additional data: Total assets $214,000 Common stockholders’ equity $116,000 Preferred dividends…