Question
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, $21,900; cost of goods sold, $14,300; selling expenses, $2,260; general and administrative expenses, $1,160; dividend revenue from investments, $160; interest expense, $260. Income taxes have not yet been accrued. The companys income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the companys income statement every year. The companys controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2016 ($ in 000s). All transactions are material in amount. |
1. | Investments were sold during the year at a loss of $260. Foxworthy also had unrealized losses of $160 for the year on investments. |
2. | One of the companys factories was closed during the year. Restructuring costs incurred were $1,600. |
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 $760 in 2016 prior to the sale, and its assets were sold at a loss of $1,880. |
4. | Foreign currency translation gains for the year totaled $640. |
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
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