Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

presented below is information related to Tao Corp. for the year 2015 (amounts in thousands). Net sales HK$1,200,000 Write-off of inventory due to obsolescence HK$80,000

presented below is information related to Tao Corp. for the year 2015 (amounts in thousands).

Net sales HK$1,200,000

Write-off of inventory due to obsolescence HK$80,000

Cost of goods sold 780,000

Depreciation expense omitted by accident in 2014 40,000

Selling expenses 65,000

Interest expense 50,000

Administrative expenses 48,000

Cash dividends declared 45,000

Dividend revenue 20,000

Retained earnings at December 31, 2014 980,000

Interest revenue 7,000

Effective tax rate of 34% on all items

Prepare an income statement for 2015. Assume that 60,000 ordinary shares are outstanding. (Round earnings per share 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 2,250. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dcaa Audits Widespread Problems With Audit Quality Require Significant Reform: Gao 09 1009t

Authors: U. S. Government Accountability Office

1st Edition

1287232027, 978-1287232025

More Books

Students also viewed these Accounting questions