Exam 17: Company Performance: Profitability

Alpine,Inc.gathered the following information for its year ended December 31,2010: The common stock was outstanding the entire year and the company's effective tax rate is 40%.Prepare a multiple step income statement,including earnings per share,for the year ended December 31,2010.

Use the following to answer questions Kaiser Corporation sold its Telecommunications Division during 2010. The company's accountants determined that the division earned $850,000 of pre-tax income during 2008 prior to disposal. The sale resulted in a $370,000 loss before taxes. Kaiser's income from continuing operations for 2008 amounted to $4,138,000. The company's effective tax rate is 35%. -The amount of gain (loss)from disposal of the Telecommunications Division that would appear on the 2010 income statement of Kaiser Corporation is:

Mountain Industries has machinery that cost $100,000,with an estimated salvage value of $15,000 and a 5 year useful life.At the start of the third year of the machinery's life,the company switched from the straight-line method of depreciation to the double-declining balance method.What will be the new depreciation for the year.

A manufacturing company using full-absorption costing can increase net income by which of the following.

Given the below data,create the inventory cost per unit using: a.full-absorption costing b.variable costing c.throughput costing Direct labor per part = $10.00 Direct materials per part = $ 6.00 Selling & Administration per part = $ 5.00 Shop Overhead per part = $ 30.00

What is comprehensive income and how does it differ from net income?

Use the following to answer questions James Company had the following income statement for the year ended December 31, 2010: -The firm's comprehensive income for 2008 was:

Alamo,Inc.had 480,000 shares of common stock outstanding on January 1,2010.An additional 150,000 shares were issued on May 1,2010,and 60,000 shares were repurchased on October 1,2010.The weighted average number of shares outstanding during 2010 was:

Fishing Lures Inc.reported a net income of $15,000.The dividends declared & paid to the common shareholders equaled $5,000.Fishing Lures Inc.had 10,000 shares outstanding all year long.What is Fishing Lures Inc.'s earnings per share?

Big Cat Inc.has the below balances (Year Ending: Dec.31,2010).Using the below accounts and amounts,create a multi-step income statement (Tax Rate = 20%).Big Cat had 100,000 shares authorized,90,000 issued and 80,000 outstanding all year long.

Which of the following is not an objective of financial reporting?

Explain how a firm can manipulate income by increasing inventory under full absorption costing.

Which of the following statements about earnings per share is false?

Under full-absorption costing,

Riegle Inc.'s income from continuing operations before taxes was $4,000,000 for the year ended December 31,2010.The company's effective tax rate is 30% and during the year the following events also took place: The company sold one of its divisions at a gain of $500,000.The division had an operating loss of $325,000 through the date of disposal. Riegle is located in Chicago and a small earthquake damaged a warehouse owned by the company.The amount of the uninsured loss was $575,000. Required: Prepare the lower portion of the income statement,from "income from continuing operations before taxes" through "net income",for the year ended 12/31/10.All during 2010 1,000,000 shares of stock were authorized and 850,000 were issued and 800,000 were outstanding.

Use the following to answer questions Kaiser Corporation sold its Telecommunications Division during 2010. The company's accountants determined that the division earned $850,000 of pre-tax income during 2008 prior to disposal. The sale resulted in a $370,000 loss before taxes. Kaiser's income from continuing operations for 2008 amounted to $4,138,000. The company's effective tax rate is 35%. -Kaiser Corporation's net income for 2010 is:

For each of the following indicate whether the item is an operating item on the income statement (O),a nonoperating item on the income statement (N),considered other comprehensive income (C),or a balance sheet item (B). _____ 1.Sales _____ 2.Cash _____ 3.Unrealized Gains _____ 4.Gain on sale of equipment _____ 5.Tax Expense _____ 6.Advertising Expense _____ 7.Loss due to fire damage _____ 8.Interest Payable _____ 9.Cost of Goods Sold _____ 10.Accumulated Depreciation

Use the following to answer questions James Company had the following income statement for the year ended December 31, 2010: -The firm's operating income for 2010 was:

Which of the following statements is false about earnings per share:

Use the following to answer questions Kaiser Corporation sold its Telecommunications Division during 2010. The company's accountants determined that the division earned $850,000 of pre-tax income during 2008 prior to disposal. The sale resulted in a $370,000 loss before taxes. Kaiser's income from continuing operations for 2008 amounted to $4,138,000. The company's effective tax rate is 35%. -The amount of extraordinary items that would appear on the 2010 income statement of Kaiser Corporation is: