Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Chapter 6, Problem 24PC
a.
To determine
State the reason behind the difference between the modified amount for total assets of Year 8 and originally reported amount.
b.
To determine
State the reason behind the similarity between the restated net income amounts for Year 8 and originally reported amount, when nearly all of the individual revenues and expenses showed a decrease on restatement.
c.
To determine
State the reason behind the difference between the modified amount of cash flow from operations for Year 8 and originally reported amount.
d.
To determine
Identify the columns and amounts in Exhibit 6.23 to analyze the changes in the structure of assets and equities between year 8 and year 9.
e.
To determine
Identify the columns and amounts in Exhibit 6.24 to analyze the changes in the operating profitability between year 8 and year 9.
f.
To determine
Identify the columns and amounts in Exhibit 6.25 to assess the short-term liquidity and long-term solvency risk with the use of cash flow ratios.
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5.
On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information.
The book value of the assets of the segment at the time of the sale was $12 million.
The loss from operations of the segment during 2024 was $4.5 million.
Pretax income from other continuing operations for the year totaled $6.6 million.
The income tax rate is 25%.
Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes.
Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.
On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business
for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following
additional information.
• The book value of the assets of the segment at the time of the sale was $12 million.
• The loss from operations of the segment during 2024 was $4.5 million.
• Pretax income from other continuing operations for the year totaled $6.6 million.
• The income tax rate is 25%.
Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes.
Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example.
$4,000,000 rather than $4.
CALIFORNIA MICROTECH CORPORATION
Partial Income Statement
For the Year Ended December 31, 2024
Income from continuing operations before income taxes
Income…
On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business
for $12 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following
additional information.
• The book value of the assets of the segment at the time of the sale was $10 million.
• The loss from operations of the segment during 2024 was $3.7 million.
• Pretax income from other continuing operations for the year totaled $5.9 million.
• The income tax rate is 25%.
Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes.
Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example,
$4,000,000 rather than $4.
Answer is complete but not entirely correct.
CALIFORNIA MICROTECH CORPORATION
Partial Income Statement
For the Year Ended December 31, 2024
Income from…
Chapter 6 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
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