Kandon Enterprises, Inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and on November 15, 2018, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2019. At December 31, 2018, the component was considered held for sale. On December 31, 2018, the company's fiscal year-end, the book value of the assets of the horse division was $371,000. On that date, the fair value of the assets, less costs to sell, was $310,000. The before-tax loss from operations of the division for the year was $250,000. The company's effective tax rate is 30%. The after-tax income from continuing operations for 2018 was $510,000. Required: 1. Prepare a partial income statement for 2018 beginning with income from continuing operations. Ignore EPS disclosures. 2. Prepare a partial income statement for 2018 beginning with income from continuing operations. Assuming that the estimated net fair value of the horse division's assets was $620,000, instead of $310,000. Ignore EPS disclosures. The Massoud Consulting Group reported net income of $1,356,000 for its fiscal year ended December 31, 2018. In addition, during the year the company experienced a positive foreign currency translation adjustment of $250,000 and had unrealized losses on investment securities of $40,000. The company's effective tax rate on all items affecting comprehensive income is 30%. Each component of other comprehensive income is displayed net of tax. Required: Prepare a separate statement of comprehensive income for 2018. (Amount to be deducted should be indicated with a minus sign.) THE MASSOUD CONSULTING GROUP Statement of Comprehensive Income For the Year Ended December 31, 2018 Net income Other comprehensive income (loss): Foreign currency translation gain, net of tax Unrealized losses on investment securities, net of tax Total other comprehensive income Comprehensive income The 2018 income statement of Anderson Medical Supply Company reported net sales of $9 million, cost of goods sold of $4.9 million, and net income of $805,000. The following table shows the company's comparative balance sheets for 2018 and 2017: ($ in 000s) 2018 2017 $ 320 720 950 2,500 $4,490 $ 400 510 750 2,220 $3,880 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Paid-in capital Retained earnings Total liabilities and shareholders' equity $ 980 1,250 1,100 1,160 $4,490 $ 850 1,250 1,100 680 $3,880 Required: 1. Calculate Anderson's turnover ratios for 2018. (Consider 365 days a year. Round your answers to 2 decimal places.) times Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio times days times Esquire Comic Book Company had income before tax of $1,500,000 in 2018 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $400,000. The division generated before-tax income from operations from the beginning of the year through disposal of $600,000. Neither the loss on disposal nor the operating income is included in the $1,500,000 before-tax income the company generated from its other divisions. 2. The company incurred restructuring costs of $55,000 during the year. Required: Prepare a 2018 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 40%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2018 Income from continuing operations Discontinued operations gain (loss): Income from operations of discontinued component Income tax expense Income on discontinued operations 0 Net income Kandon Enterprises, Inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and on November 15, 2018, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2019. At December 31, 2018, the component was considered held for sale. On December 31, 2018, the company's fiscal year-end, the book value of the assets of the horse division was $371,000. On that date, the fair value of the assets, less costs to sell, was $310,000. The before-tax loss from operations of the division for the year was $250,000. The company's effective tax rate is 30%. The after-tax income from continuing operations for 2018 was $510,000. Required: 1. Prepare a partial income statement for 2018 beginning with income from continuing operations. Ignore EPS disclosures. 2. Prepare a partial income statement for 2018 beginning with income from continuing operations. Assuming that the estimated net fair value of the horse division's assets was $620,000, instead of $310,000. Ignore EPS disclosures. The Massoud Consulting Group reported net income of $1,356,000 for its fiscal year ended December 31, 2018. In addition, during the year the company experienced a positive foreign currency translation adjustment of $250,000 and had unrealized losses on investment securities of $40,000. The company's effective tax rate on all items affecting comprehensive income is 30%. Each component of other comprehensive income is displayed net of tax. Required: Prepare a separate statement of comprehensive income for 2018. (Amount to be deducted should be indicated with a minus sign.) THE MASSOUD CONSULTING GROUP Statement of Comprehensive Income For the Year Ended December 31, 2018 Net income Other comprehensive income (loss): Foreign currency translation gain, net of tax Unrealized losses on investment securities, net of tax Total other comprehensive income Comprehensive income The 2018 income statement of Anderson Medical Supply Company reported net sales of $9 million, cost of goods sold of $4.9 million, and net income of $805,000. The following table shows the company's comparative balance sheets for 2018 and 2017: ($ in 000s) 2018 2017 $ 320 720 950 2,500 $4,490 $ 400 510 750 2,220 $3,880 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Paid-in capital Retained earnings Total liabilities and shareholders' equity $ 980 1,250 1,100 1,160 $4,490 $ 850 1,250 1,100 680 $3,880 Required: 1. Calculate Anderson's turnover ratios for 2018. (Consider 365 days a year. Round your answers to 2 decimal places.) times Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio times days times Esquire Comic Book Company had income before tax of $1,500,000 in 2018 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $400,000. The division generated before-tax income from operations from the beginning of the year through disposal of $600,000. Neither the loss on disposal nor the operating income is included in the $1,500,000 before-tax income the company generated from its other divisions. 2. The company incurred restructuring costs of $55,000 during the year. Required: Prepare a 2018 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 40%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2018 Income from continuing operations Discontinued operations gain (loss): Income from operations of discontinued component Income tax expense Income on discontinued operations 0 Net income