Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1) Harvey Creep, Inc. has the following information for 2019 and 2020: Revenues COGS Selling & Administrative expenses other than interest (000s) 2019 $40,000 32,000
1) Harvey Creep, Inc. has the following information for 2019 and 2020: Revenues COGS Selling & Administrative expenses other than interest (000s) 2019 $40,000 32,000 4,200 (000s) 2020 $46,000 36,200 5,100 Loss on discontinued operations -net of tax 700 Tax rate 25% 20% In both 2019 and 2020 HarveyCreep incurred 9.5% interest expense on $2,000,000 of debt which had been issued at par in 2015. As of 1/1/19 there were 3,000,000 shares of common stock outstanding. There were also 20,000 shares of $100 par value, 7%, cumulative preferred stock outstanding at 1/1/19. There are no preferred dividends in arrears and there are no potentially dilutive securities. On 5/1/19 HarveyCreep sold an additional 500,000 shares of common stock at $32 per share. On 8/1/19 HarveyCreep issued a 25% stock dividend. On 10/1/20 Harvey Creep sold another 900,000 shares of common stock at $33 per share. Prepare, in good form, comparative income statements for 2019 and 2020 (i.e., the two-year comparative income statements for the years ended 12/31/20) for HarveyCreep, Inc. with appropriate EPS information rounded to the nearest tenth of a cent
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started