Prepare an income statement with appropriate supporting schedules for Company W for the year ended December 31, 2016 by using the multiple-step format.

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Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Federal income tax due for the previous year is paid.

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Chapter 5, Problem 8P

To determine

Prepare an income statement with appropriate supporting schedules for Company W for the year ended December 31, 2016 by using the multiple-step format.

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