2.

An inexperienced accountant for Ivanhoe Corporation showed the following in the income statement: net income $350,000 and unrealized gain on available-for-sale securities (before taxes) $87,000. The unrealized gain on available-for-sale securities is subject to 3 35% tax rate. Prepare a correct statement of comprehensive income. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) IVANHOE CORPORATION Partial Statement of Comprehensive Income VPharoah Company has stockholders equity of $350,000 and net income of $63,900. It has a payout ratio of 18% and a return on assets of 20%. How much did Hollie pay in cash dividends, and what were its average total assets? Cash dividends Average total assets $An inexperienced accountant for Oriole Transport Corporation showed the following in Oriole Transport's 2021 income statement: income before income taxes of $452,000; and unrealized loss on available-for-sale debt securities (before taxes) of $76,000. The unrealized loss and the income before income taxes are both subject to a 20% tax rate. Prepare a corrected partial income statement and a statement of comprehensive income ORIOLETRANSPORT CORPORATION Partial Income Statement and Statement of Comprehensive Income $Comparative information taken from the Wildhorse Company financial statements is shown below: Using horizontal analysis, show the percentage change from 2020 to 2021 with 2020 as the base year. 2021 2020 Percentage Increase or Decrease (a) Accounts receivable $218,700 $162,000 9% (b) Retained earnings 52,000 (36,000) % (c) Sales revenue 895,520 772,000 (d) Operating expenses 192,760 244,000 9% (e) Income taxes payable 35,520 32,000 9%Using these data from the comparative balance sheet of Cullumber Spice Company is presented below. Prepare a schedule showing a horizontal analysis for 2021 using 2020 as the base year. (Round percentage answers to 1 decimal place, e.g. 15.2%.) Increase or (Decrease) December 31, December 31, Amount 2021 2020 Percentage Accounts $425.100 $325,000 $ % receivable Inventory 830.000 625,000 % Total assets 3,271,350 2.825,000 %Using the following selected items from the comparative balance sheet of Oriole Company, illustrate horizontal (using 2020 as the base year) and vertical analysis. (Round vertical analysis to 1 decimal place, e.g. 15.2.) HORIZONTAL ANALYSIS December 31. December 31, December 31, December 31, 2021 2020 2021 2020 Accounts Receivable $725,460 $635,110 96 Inventory 455,820 370,230 Total Assets 3.210,000 3.010,000 9%SANDHILLCOMPANY Balance Sheets December 21 2021 2020 Cash $50,000 $40,000 Accounts receivable [net) 75.000 70.000 Inventory 70.000 40,000 Property, plant and equipment (net] 195.000 190,000 293.000 360,000 Accounts payable 40.000 70,000 Mortgage payable [1516, due in 15 years) 110,000 110,000 Common stock, $10 par 150,000 130,000 Retained sanings 73.000 50.000 393.000 340,000 Additional information for 2021: 1. Netincomewas $35,000. 2. Sales on account were $460,000. Sales returns and allowances amounted to $32,250. 3. Cost of goods sold was $325,000. 4. Net cash provided by operating activities was $59,000 5. Capital expenditures were $30,000, and cash dividends were $28,000. Compute the following ratios at December 21, 2021: (Use 365 days for calculation. Round answers to 1 decimal place, es. 52.7) Current ratio :1 Accounts receivable turnover times Average collection period days Inventory turnover times Days in inventory daysIncome Statement For the Year Ended December 31, 2021 Sales revenue $436.000 Cost of goods sold 262.000 Gross profit 174,000 Expenses (including $18,000 interest and $35,200 income taxes) 112,000 Net income $62,000 Additional information: 1. Common stock outstanding January 1, 2021 was 42,000 shares and 52,000 shares were outstanding at December 31, 2021. 2. The market price of Blossom, Inc., stock was $16 in 2021. 3. Cash dividends of $17,490 were paid, $1.370 of which were to preferred stockholders. Compute the following measures for 2021: (Round Earnings per share to 2 decimal places, e.g. 52.75. Round other answers to 1 decimal place, e.g. 52.7.) (a) Earnings per share (b) Price-earnings ratio times (c) Payout ratio (d) Times interest earned times