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Brief Exercise 4-06 During 2020, Blossom Company changed from FIFO to weighted average inventory pricing. Pretax income in 2019 and 2018 (Blossom's first year of
Brief Exercise 4-06 During 2020, Blossom Company changed from FIFO to weighted average inventory pricing. Pretax income in 2019 and 2018 (Blossom's first year of operations under FIFO was $176,070 and $ 188,960, respectively. Pretax income using weighted average pricing in the prior years would have been $156,800 in 2019 and $189,200 in 2018. In 2020, Blossom reported pretax income (using weighted average pricing) of $217,000. Show comparative income statements for Blossom, beginning with "Income before income tax," as presented on the 2020 income statement. The tax rate in all years is 30%.) 2020 2019 2018 Income before income tax Income tax Net Income A $ Brief Exercise 4-07 Windsor Company has recorded bad debt expense in the past at a rate of 1.5% of accounts receivable, based on an aging analysis. In 2020, Windsor decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $360,100 instead of $270,075. In 2020, bad debt expense will be $130,800 instead of $98,100. If Windsor's tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate? (Do not leave any answer field blank. Enter o for amounts.) The cumulative effect of changing the estimated bad debt rate Brief Exercise 4-08 In 2020, Oriole Corporation reported net income of $1,236,500. It declared and paid preferred stock dividends of $258,800. During 2020, Oriole had a weighted average of 194,900 common shares outstanding. Compute Oriole's 2020 earnings per share. (Round earnings per share to 2 decimal places, e.g. 1.48.) Oriole's 2020 earnings per share Brief Exercise 4-09 Swifty Corporation has retained earnings of $683,300 at January 1, 2020. Net income during 2020 was $1,630,000, and cash dividends declared and paid during 2020 totaled $80,000. Prepare a retained earnings statement for the year ended December 31, 2020. (List items that increase retained earnings first.) SWIFTY CORPORATION Retained Earnings Statement
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