Respuesta :
Answer:
Explanation:
a. The computation of the income from operations is shown below:
= Sales revenue - Cost of goods sold - Selling and admin expenses
= $310,000 - $140,000 - $50,000
= $120,000
b. The computation of the net income is shown below:
= Income from operations + Gain on sale of plant assets - interest expenses - Loss on discontinued operations
= $120,000 + $30,000 - $6,000 - $12,000
= $132,000
c. The computation of the comprehensive income is shown below:
= Net income + unrealized holding loss on these securities
= $132,000 + $10,000
= $142,000
d. The computation of the ending retained earning balance is shown below:
= Net income - Dividends declared and paid
= $132,000 - $5,000
= $127,000
The income from operations is $120,000, the net income is $132,000, the comprehensive income is $142,000 and the retained earnings balance at December 31, 2017 is $127,000.
a. Income from operations = Sales revenue - Cost of goods sold - Selling and admin expenses
Income from operations = $310,000 - $140,000 - $50,000
Income from operations = $120,000
b. Net income = Income from operations + Gain on sale of plant assets - interest expenses - Loss on discontinued operations
Net income = $120,000 + $30,000 - $6,000 - $12,000
Net income = $132,000
c. Comprehensive income = Net income + unrealized holding loss on these securities
Comprehensive income = $132,000 + $10,000
Comprehensive income = $142,000
d. The ending retained earning balance as at December 31, 2017 is:
= Net income - Dividends declared and paid
= $132,000 - $5,000
= $127,000
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