Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2016 ($ in 000s): sales

The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2016 ($ 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, $400. Income taxes have not yet been accrued. The companys income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the companys income statement every year. The companys controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2016 ($ in 000s). All transactions are material in amount.

1.

Investments were sold during the year at a loss of $400. Foxworthy also had unrealized losses of $300 for the year on investments.

2. One of the companys factories was closed during the year. Restructuring costs incurred were $3,000.
3.

During the year, Foxworthy 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 2016 prior to the sale, and its assets were sold at a loss of $1,600.

4. Foreign currency translation gains for the year totaled $500.

Required:

Prepare Foxworthys single, continuous statement of comprehensive income for 2016, 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.)

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

Eco Management And Audit Scheme

Authors: Gerardus Blokdyk

3rd Edition

0655169709, 978-0655169703

More Books

Students also viewed these Accounting questions