Show Work Please
The following income statement items appeared on the adjusted trial balance of Simpleton Corporation for the year ended December 31, 2018 ($ in 000s): sales revenue, $23,300; cost of goods sold, $15,000; selling expenses, $2,400; general and administrative expenses, $1,300; dividend revenue from investments, $300; interest expense, $400. Income taxes have not yet been accrued. The company's income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2018 ($ in 000s). All transactions are material in amount. 1. Investments were sold during the year at a loss of $400. Simpleton also had unrealized holding losses of $300 for the year on investments. 2. One of the company's factories was closed during the year. Restructuring costs incurred were $3,000. 3. During the year, Simpleton completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $900 in 2018 prior to the sale, and its assets were sold at a loss of $1,600. 4. A positive foreign currency translation adjustment for the year totaled $500. Required: Prepare Simpleton's single, continuous statement of comprehensive income for 2018, including earnings per share disclosures. Use a multiple-step income statement format. Two million shares of common stock were outstanding throughout the year. (Enter your answers in thousands of dollars, except earnings per share. Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) Required: Prepare Simpleton's single, continuous statement of comprehensive income for 2018, including earnings per share disclosures. Use a multiple-step income statement format. Two million shares of common stock were outstanding throughout the year. (Enter your answers in thousands of dollars, except earnings per share. Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) SIMPLETON CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2018 ($ in 000s) Sales revenue $ 23,300 (15,000) 8,000 Cost of goods sold Gross profit Operating expenses Selling expenses General and administrative expenses Restructuring costs $ (2,400) (1,300) (3,000) (6,700) 1,300 Total operating expenses Operating income Other income (expense) Loss on sales of investments $ (400) (400) Interest expense (800) 500 (6,700) 1,300 Total operating expenses Operating income Other income (expense) Loss on sales of investments $ (400) Interest expense (400) (800) 500 500 0 500 Other comprehensive income 0 $ 500 Earnings per share: Income from continuing operations
