Question
The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2019: Selling, general, and administrative expenses $
The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2019:
Selling, general, and administrative expenses
$
106,000
Accounts payable
$
170,000
Research and development expenses
$
77,000
Loss from discontinued operations, net of tax savings of $8,000
$
24,000
Provision for income taxes
$
35,000
Net sales
$
948,000
Interest expense
$
97,000
Net cash provided by operations
$
296,000
Cost of goods sold
$
521,000
Required:
a. Calculate the operating income for Spenser Co. for the year ended December 31, 2019.
SPENSER CO.
Operating Income Statement
For the year ended December 31, 2019
?
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#?
?
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#?
?
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Expenses:
////////////////////
////////////////////
?
#?
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?
#?
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#?
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?
#?
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?
////////////////////
////////////////////
b. Calculate the company's net income for 2019.
(Net income/ Net Loss) (#)
The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2019:
Selling, general, and administrative expenses | $ | 106,000 |
|
Accounts payable | $ | 170,000 |
|
Research and development expenses | $ | 77,000 |
|
Loss from discontinued operations, net of tax savings of $8,000 | $ | 24,000 |
|
Provision for income taxes | $ | 35,000 |
|
Net sales | $ | 948,000 |
|
Interest expense | $ | 97,000 |
|
Net cash provided by operations | $ | 296,000 |
|
Cost of goods sold | $ | 521,000 |
|
Required:
a. Calculate the operating income for Spenser Co. for the year ended December 31, 2019.
SPENSER CO.
Operating Income Statement
For the year ended December 31, 2019
? | //////////////////// | #? |
? | //////////////////// | #? |
? | //////////////////// | //////////////////// |
Expenses: | //////////////////// | //////////////////// |
? | #? | //////////////////// |
? | #? | //////////////////// |
? | #? | //////////////////// |
? | #? | //////////////////// |
? | //////////////////// | //////////////////// |
b. Calculate the company's net income for 2019.
|
|
(Net income/ Net Loss) (#)
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
7th Edition
0912503688, 978-0912503684
