Checkpoint Systems is a leading provider of source tagging, handheld labeling systems, retail merchandising systems, and bar-code labeling systems. In a press release, Checkpoint stated the following:
GAAP reported net loss for the fourth quarter of 2004 was $29.3 million, or $0.78 per diluted share, compared to net earnings of $4.5 million, or $0.13 per diluted share, for the fourth quarter 2003. Excluding impairment and restructuring charges, net of tax, the Company’s net income for the fourth quarter 2004 was $0.30 per diluted share, compared to $0.27 per diluted share in the fourth quarter 2003.
Calculate the amount of the impairment and restructuring charges Checkpoint reported in 2004 and 2003. Discuss why the firm reported earnings both including and excluding impairment and restructuring charges.
Want to see the full answer?
Check out a sample textbook solutionChapter 6 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
- You have been asked to carry out an investigating by the management of Adepa Ltd. One of the company’s subsidiaries, Papa Engineering Ltd, has been making losses for the past years. Adepa’s management is concerned about the accuracy of Papa Engineering’s most recent quarter’s management accounts. The summarized income statements for the last three quarters are as follows: Quarter to 30/09/17 30/06/17 31/03/17 GHS000 GHS000 GHS000 Revenue 860 668 686 Opening inventory 360 326 331 Materials 636 468 475 Direct wages…arrow_forwardIn 1995, MPX Corporation’s net income was $800,000 and in 1996 it was $200,000. What percentage increase in net income must MJP achieve in 1997 to offset the 1996 decline and to maintain the 1995 level in net income?arrow_forwardBlossom Corp's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 500.500 units of product: sales $2,502,500, total costs and expenses $2,615,550, and net loss $113,050. Costs and expenses consisted of the following amounts. Cost of goods sold Selling expenses Administrative expenses Total 2 Variable $1,491,490 $2,155,090 $663,600 250,250 158,158 210,210 142,142 $2,615,550 $1,651,650 $963,900 Fixed 92,092 68,068 Management is considering the following independent alternatives for 2023. 1. Increase the unit selling price 20% with no change in total costs, total expenses, and sales volume. Change the compensation of sales personnel from fixed annual salaries totaling $150,150 to total salaries of $60,060 plus a 6% commission on sales, All other total costs, total expenses, and total sales remain unchanged.arrow_forward
- Aneko Company reports the following: net sales of $17,500 for Year 2 and $16,625 for Year 1; end-of-year total assets of $18,000 for Year 2 and $16,500 for Year 1. 1. Compute its total asset turnover for Year 2. 2. Aneko's competitor has a turnover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its total asset turnover for Year 2. Choose Numerator: 1 1 1 Total asset turnover Choose Denominator: = = = Total asset turnover Total asset turnover timesarrow_forwardWie Corp's sales last year were $260,000, and its year-end total assets were $360,000. The average firm in the industry has a total assets turnover ratio (TATO) of 2.4. The firm's new CFO believes the firm has excess assets that can be sold to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant? Do not round your intermediate calculations.arrow_forwardThe Carlo Company’s Household Products Division reported in 2007 sales of P15,000,000, an asset turnover ratio of 3.0, and a rate of return on average assets of 18 percent. Question: What is the percentage of net income to sales?arrow_forward
- In its 2014 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $8,113 million, end-of-the-year total assets of $8,323 million, total sales of $8,268 million, and net income of $807 million. (a) Compute Campbell’s asset turnover. (b) Compute Campbell’s profit margin on sales. (c) Compute Campbell’s return on assets using (1) asset turnover and profit margin and (2) net income. (Round to two decimal places.)arrow_forwardGibraltar Industries is a New York-based manufacturer of high-value-added steel products. In a recent year, it reported the following activities: Acquisitions (Investments in other companies) ($8,724.00) Decrease in inventories $1,770.00 Depreciation and Amortization $33,907.00 Long-Term Debt Reduction ($105,507.00) Net Cash provided by operating activities $107,874.00 Net income $24,068.00 Net proceeds from issuance of common stock $250.00 Net proceeds from sale of property and equipment $2,692.00 Payment of dividends ($5,985.00) Proceeds from long-term debt $53,439.00 Proceeds from sale of other equity investments $34,701.00 Purchase of property, plant, and equipment ($21,595.00) Required: 1. Based on this information, present the cash flows from investing and financing activities section of the cash flow statement.arrow_forwardLast year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $215,000 and its net income was $10,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed? Select the correct answer. a. 6.74% b. 6.21% c. 7.27% d. 7.80% e. 5.68%arrow_forward
- The ledger of Starship Corporation at December 31, 2020, contains the following summary data. Net Sales $1,700,000 Selling expenses 100,000 Other revenues and gains 20,000 Cost of goods sold 900,000 Administrative expenses 200,000 Other expenses and losses 30,000 Your analysis reveals the following additional information that is not included in the above data. The entire laser division was discontinued on August 31. The income from operations for this division before income taxes was $70,000. The laser division was sold at a loss of $50,000 before income taxes. The company had an unrealized gain on available-for-sale securities of $80,000 before income taxes for the year. The income tax rate on all items is 30%. REQUIRED: Prepare a statement of comprehensive income for the year ended December 31, 2020.arrow_forwardBruceton Farms Equipment Company had goodwill valued at $80 million on its balance sheet at year-end.A review of the goodwill by the company’s CFO indicated that the goodwill was impaired and was now only worth $50 million.What is the financial statement effect of the goodwill impairment? (Enter the amount of the change, using negative numbers when appropriate.) Assets change by million Liabilities change by million Equity changes by million Net income changes by millionarrow_forwardFor 20Y3, Greyhound Technology Company reported its most significant decline in net income in years. At the end of the year, Duane Vogel, the president, is presented with the following condensed comparative income statement: GREYHOUND TECHNOLOGY COMPANYComparative Income StatementFor the Years Ended December 31, 20Y3 and 20Y2 20Y3 20Y2 Sales $ 586,521 $ 513,000 Cost of goods sold (416,000) (320,000) Gross profit $ 170,521 $ 193,000 Selling expenses $ (59,130) $ (43,000) Administrative expenses (34,290) (27,000) Total operating expenses $ (93,420) $ (70,000) Income from operations $ 77,101 $ 123,000 Other income 2,809 2,200 Income before income tax $ 79,910 $ 125,200 Income tax expense (22,400) (37,600) Net income $ 57,510 $ 87,600arrow_forward
- Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning