Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you please assist with the areas highlighted in red? The following information is related to Novak Company for 2020. Retained earnings balance, January 1,
Can you please assist with the areas highlighted in red?
The following information is related to Novak Company for 2020. Retained earnings balance, January 1, 2020 $1,352,400 Sales Revenue 34,500,000 Cost of goods sold 22,080,000 Interest revenue 96,600 Selling and administrative expenses 6,486,000 Write-off of goodwill 1,131,600 Income taxes for 2020 1,716,720 Gain on the sale of investments 151,800 Loss due to flood damage 538,200 Loss on the disposition of the wholesale division (net of tax) 607.200 Loss on operations of the wholesale division (net of tax) 124,200 Dividends declared on common stock 345,000 Dividends declared on preferred stock 110,400 Novak Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Novak sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.) NOVAK COMPANY Income Statement For the Year Ended December 31, 2020 Sales Revenue 34500000 Cost of Goods Sold -22080000 12420000 Gross Profit/(Loss) Selling and Administrative Expenses -6486000 Income from Operations 5934000 Other Revenues and Gains Interest Revenue Gain on the Sale of Investments 96600 151800 248400 Other Expenses and Losses Write-off of Goodwill -1131600 i Loss from Flood Damage -538200 - 1669800 Income from Continuing Operations Before Income Tax 4512600 Income Tax - 1716720 Income from Continuing OperationsStep 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