FINANCIAL ACCOUNTING
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![Required Information
[The following Information applies to the questions displayed below.]
In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company
completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of
an Income statement follows.
Item
1. Net sales
2. Gain on state's condemnation of company property
3. Cost of goods sold
4. Income tax expense
5. Depreciation expense
6. Gain on sale of wholesale business segment, net of tax
7. Loss from operating wholesale business segment, net of tax
8. Loss of assets from meteor strike
Prepare the December 31 year-end Income statement.
Note: Loss amounts should be Indicated with a minus sign.
Net sales
Expenses:
RANDA MERCHANDISING, INCORPORATED
Income Statement
For Year Ended December 31
Total operating expenses
Other unusual and/or infrequent gains (losses)
Discontinued segment:
Debit
Credit
$ 4,000,000
317,000
$ 2,041,000
299,000
320,000
1,069,000
612,000
883,000](https://content.bartleby.com/qna-images/question/71da004f-23dc-47ac-9c54-84cf84b3724a/fe04664e-3cb1-483c-a336-ab4b69f3cdcd/wbox5yi_processed.png)
Transcribed Image Text:Required Information
[The following Information applies to the questions displayed below.]
In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company
completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of
an Income statement follows.
Item
1. Net sales
2. Gain on state's condemnation of company property
3. Cost of goods sold
4. Income tax expense
5. Depreciation expense
6. Gain on sale of wholesale business segment, net of tax
7. Loss from operating wholesale business segment, net of tax
8. Loss of assets from meteor strike
Prepare the December 31 year-end Income statement.
Note: Loss amounts should be Indicated with a minus sign.
Net sales
Expenses:
RANDA MERCHANDISING, INCORPORATED
Income Statement
For Year Ended December 31
Total operating expenses
Other unusual and/or infrequent gains (losses)
Discontinued segment:
Debit
Credit
$ 4,000,000
317,000
$ 2,041,000
299,000
320,000
1,069,000
612,000
883,000
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- In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Exercise 17-18A (Algo) Income statement presentation LO A2 Net sales Expenses: Item Total operating expenses Other unusual and/or infrequent gains (losses) Discontinued segment: RANDA MERCHANDISING, INCORPORATED Income Statement For Year Ended December 31 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.) Debit $ $ 1,684,000 247,000 264,000 505,000 728,000 0 0 0 0 Credit $…arrow_forwardRequired Information [The following information applies to the questions displayed below] In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Item Prepare the December 31 year-end income statement. Note: Loss amounts should be Indicated with a minus sign. Net sales Expenses: Total operating expenses Discontinued segment: Other unusual and/or infrequent gains (losses) Debit $ 1,990,000 292,000 312,000 RANDA MERCHANDISING, INCORPORATED Income Statement For Year Ended December 31…arrow_forwarddo not give solution in image formetarrow_forward
- The following comparative information is available for Wildhorse Company for 2025. Sales revenue Cost of goods sold Operating expenses (including depreciation) Depreciation Cash paid for inventory purchases Your answer is partially correct. Net income $ eTextbook and Media * Your answer is incorrect. LIFO eTextbook and Media Net cash provided by operating activities * Your answer is incorrect. Determine net income under each approach. Assume a 30% tax rate. 18,200 Quality of earnings ratio Touthook and Media LIFO $92,000 35,000 26,000 LIFO 9,000 14,705 FIFO $92,000 Determine net cash provided by operating activities under each approach. Assume that all sales were on a cash basis and that income taxes and operating expenses, other than depreciation, were on a cash basis. 31,800 26,000 9,000 2.14 14,705 FIFO 23,940 LIFO Calculate the quality of earnings ratio under each approach. (Round answers to 2 decimal places, e.g. 5.15.) 39,005 FIFO FIFO 0.95 22,750arrow_forwardAlimentation Couche-Tard Inc. is a leading convenience store operator in Canada, with Couche-Tard stores in Quebec and Mac's stores in central and western Canada. It also operates Circle K shops in the United States and Ingo automated fuel sites in Sweden and Denmark. Revenues Cost of sales Gross profit Operating, selling, administrative, and general expenses (Gain) loss on disposal of property and equipment and other assets Depreciation, amortization, and impairment Total operating expenses CONSOLIDATED STATEMENTS OF EARNINGS For the years ended April 24, 2022, April 25, 2021, and April 28, 2020 (in millions of U.S. dollars) Operating income Share of earnings of joint ventures and associated companies Net financial expenses Earnings before income taxes Income taxes Net earnings DAM..:.-4. Revenues Cost of sales Gross profit $ Operating, selling, administrative, and general expenses (Gain) loss on disposal of property and equipment and other assets Depreciation, amortization, and…arrow_forwardRequired Information [The following information applies to the questions displayed below.] Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2824 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other incone (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2824 and 2023 ($ in millions) Year Cash Accounts receivable Inventory Accounts payable Salaries payable Interest payable Income tax payable Cash Flows from Operating Activities Adjustments for noncash effects: Changes in operating assets and Mablities: 2824 Net cash flows from operating activities $ 246 388 894 227 187 69 97 $ 225 183 14 S 2023 $217 487 867 268 282 57 118 $830 315 515 0 422 93…arrow_forward
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