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can someone help me: prepare the corrected income statements for Sterling that would be prepared by the auditor in accordance with GAAP Sterling Company prepared
can someone help me: prepare the corrected income statements for Sterling that would be prepared by the auditor in accordance with GAAP Sterling Company prepared the following Income Statement for review by its auditor. Sterling Company Income Statement For the Year Ended 12/31/19 250.00 +50,000 Sales Cost of goods sold Gross profit Operating expenses Income before income taxes Income tax expense (30%) Net income $7,500,000 3.800.000 3,700,000 1.900.000 1,800,000 540.000 $1,260.000 Sterling Company has had 200,000 shares of common stock outstanding all year. Included in cost of goods sold is an unusually large $250,000 writedown of obsolete inventory, Operating expenses include (a) additional bad debt expense of $50,000 due to a decision to increase the Allowance for Doubtful Accounts because of a change in economic conditions, and (b) a loss of $100,000 due to a fire in the warehouse. On October 1, Sterling decided to spin-off its manufacturing division, which the auditor determines is a separate business segment. After this decision, Sterling omitted the division from the income statement. The division's operating loss up to 10/1/19 was $150,000. After 10/1/19, it lost an additional $40,000. Sterling expects to sell the net assets in January 2020. Required: Prepare the corrected Income Statement for Sterling that would be prepared by the auditor in accordance with GAAP
can someone help me:
prepare the corrected income statements for Sterling that would be prepared by the auditor in accordance with GAAP
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