Information for Scandinavian Products at the end of Year 4 follows. $\begin{array}{lr} \text { Current Assets } & \$ 900,000 \\ \text { Current Liabilities } & 400,000 \\ \text { Fixed Assets, Net } & 600,000 \\ \text { Investments } & 100,000 \\ \text { Long-Term Debt } & 500,000 \\ \text { Dividends Declared on Common Stock during the Year } & 50,000 \\ \text { Rncome Summary (income) } & 225,000 \\ \text { Retained Earnings, January 1, Year 4 } & ? \\ \text { CommonStock } & 150,000\\ \text { Premium an Common Stack }&250,000 \end{array}$ Required: a.Find the ending balance in Retained Earnings as of December 31,Year 4. b.Find the beginning balance in Retained Earnings as of January 1,Year 4.

a.Ending Balance Assets Liabilities + Eq

The stockholders' equity of Anamanda Company at September 30,2012,is presented below: $\text {Common Stack, par value \$10, authorized 500,000 shares; 200,000}$ $\begin{array}{llcc} \text { shares issued and outstanding } &\$2,000,000 \\ \text { Paid-In Capital in Excess of Par } &300,000\\ \text { Retained Earnings } &\underline{1,300,000}\\ \text { } &\underline{\$3,600,000}\\ \text { } &\\ \text { } &\\ \end{array}$ On October 1,2012,the Board of Directors of Anamanda declared a 10% stock dividend to be distributed on November 10.The market price of the common stock was $15 on October 1 and $17 on November 10.What is the amount of the charge to retained earnings as a result of the declaration and distribution of this stock dividend?

A) $0 B) $200,000 C) $300,000 D) $340,000 E) $750,000 A) $0 B) $200,000 C) $300,000 D) $340,000 E) $750,000

Exam 4: Income Statement

Canco Inc.owns 70% of Supersonics and consolidates this subsidiary.In 2012,Supersonics earned $100,000 after tax and Canco earned $1,000,000.Without consideration of minority interests,the stockholders' equity of Supersonics at the end of 2012 was $1,200,000.Required: a.Determine the minority share of earnings in 2012. b.Determine the consolidated net income. c.Determine the minority interest at the end of 2012 on the balance sheet. d.How should minority interest be classified on the balance sheet for analysis?

(Essay)

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Question 21

Ideally,income from continuing operations would be the better income figure to use to project the future from the analysis of historical statements.

(True/False)

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Question 22

Equity earnings can distort the reported results of a business's operations.

(True/False)

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Question 23

Advertising expense would be an administrative expense.

(True/False)

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Question 24

Information for Scandinavian Products at the end of Year 4 follows. Current Assets \ 900,000 Current Liabilities 400,000 Fixed Assets, Net 600,000 Investments 100,000 Long-Term Debt 500,000 Dividends Declared on Common Stock during the Year 50,000 Rncome Summary (income) 225,000 Retained Earnings, January 1, Year 4 ? CommonStock 150,000 Premium an Common Stack 250,000 Required: a.Find the ending balance in Retained Earnings as of December 31,Year 4. b.Find the beginning balance in Retained Earnings as of January 1,Year 4.

(Essay)

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Question 25

Which of the following is a recurring item?

(Multiple Choice)

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Question 26

When a company discontinues and disposes of a component segment of its operations,the gain or loss from disposal should be reported as:

(Multiple Choice)

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Question 27

The stockholders' equity of Anamanda Company at September 30,2012,is presented below: $\text {Common Stack, par value \$10, authorized 500,000 shares; 200,000}$ shares issued and outstanding \2 ,000,000 Paid-In Capital in Excess of Par 300,000 Retained Earnings On October 1,2012,the Board of Directors of Anamanda declared a 10% stock dividend to be distributed on November 10.The market price of the common stock was $15 on October 1 and $17 on November 10.What is the amount of the charge to retained earnings as a result of the declaration and distribution of this stock dividend?

(Multiple Choice)

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Question 28

Which of the following would be classified as an extraordinary item on the income statement?

(Multiple Choice)

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Question 29

Andromeda Industries had 300,000 shares of common stock with a $3 par value and retained earnings of $180,000 at January 1,2011.In 2011,the stock was split 3 for 1.In 2010,earnings per share were $1.80.Which of the following would not result from the stock split?

(Multiple Choice)

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Question 30

Patricia Company owns 25% of Sandra Company and accounts for the investment on the equity basis and does not consolidate.At the beginning of 2012,the investment in Sandra Company was $180,000.In 2012,Sandra Company earned $70,000 and paid dividends of $10,000.Required: a.How much will Patricia Company report as equity in earnings of Sandra Company in 2012? b.How much cash flow will Patricia Company receive from Sandra Company in 2012? c.Why does recognition of equity earnings cause problems in analysis?

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Question 31

Which of the following is not a category within accumulated other comprehensive income?

(Multiple Choice)

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Question 32

For the income statement under IFRS,there is a required format.

(True/False)

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Question 33

The term primary analysis is used to describe consistent and conservative analysis.

(True/False)

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Question 34

Assume that Algary,Inc.uses the following financial statements for the year ended December 31,2012. BS-Balance Sheet IS-Income Statement RE-Retained Earnengs Categories on these statements follow: A. Current Assets B. Investments C. Fixed Assets D. Intangible Assets E. Current Liabilities F. Long-Term Liabilities G. Stockholders' Equity H. Sales and Other Operating Revenue I. Cost of Goods Sold J. Operating Expenses K. Other Income L. Other Expense M. Additions to Retained Earnings N. Deductions from Retained Earnings Required: Indicate by the statement abbreviation and category number how each of the following is best classified or where it is included in the computation.If an item is not reported anywhere,use the letter "X" to indicate this.Only the best answer should be selected.For balance sheet accounts only,if the account balance is normally opposite that of a typical account (contra),set off the answer in parentheses.Samples: Sales Accumulated Depreciation $Assume that Algary,Inc.uses the following financial statements for the year ended December 31,2012. \begin{array}{llcc} \text {BS-Balance Sheet } & \text { IS-Income Statement } & \text { RE-Retained Earnengs} &\\ \end{array} Categories on these statements follow: \begin{array}{ll} \text { A. } & \text { Current Assets } \\ \text { B. } & \text { Investments } \\ \text { C. } & \text { Fixed Assets } \\ \text { D. } & \text { Intangible Assets } \\ \text { E. } & \text { Current Liabilities } \\ \text { F. } & \text { Long-Term Liabilities } \\ \text { G. } & \text { Stockholders' Equity } \\ \text { H. } & \text { Sales and Other Operating Revenue } \\ \text { I. } & \text { Cost of Goods Sold } \\ \text { J. } & \text { Operating Expenses } \\ \text { K. } & \text { Other Income } \\ \text { L. } & \text { Other Expense } \\ \text { M. } & \text { Additions to Retained Earnings } \\ \text { N. } & \text { Deductions from Retained Earnings } \end{array} Required: Indicate by the statement abbreviation and category number how each of the following is best classified or where it is included in the computation.If an item is not reported anywhere,use the letter X to indicate this.Only the best answer should be selected.For balance sheet accounts only,if the account balance is normally opposite that of a typical account (contra),set off the answer in parentheses.Samples: \begin{array}{llcc} \underline{ \text { IS H } } & \text { Sales } &\\ \underline{ \text { (BS C) }} &\text { Accumulated Depreciation } &\\ \end{array}$

(Essay)

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Question 35

Comprehensive income is net income plus the periods change in accumulated other comprehensive income.

(True/False)

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Question 36

Earnings per share is the earnings per share of outstanding common stock.

(True/False)

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Question 37

IFRS allows for alternative performance measures to be presented in the income statement that are not allowed by U.S.GAAP.

(True/False)

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Question 38

The legality of distributions to stockholders is governed by federal law.

(True/False)

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Question 39

Which of the following will be disclosed in the reconciliation of retained earnings?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 55

Ideally,income from continuing operations would be the better income figure to use to project the future from the analysis of historical statements.

Equity earnings can distort the reported results of a business's operations.

Advertising expense would be an administrative expense.

Which of the following is a recurring item?

When a company discontinues and disposes of a component segment of its operations,the gain or loss from disposal should be reported as:

Which of the following would be classified as an extraordinary item on the income statement?

Andromeda Industries had 300,000 shares of common stock with a $3 par value and retained earnings of $180,000 at January 1,2011.In 2011,the stock was split 3 for 1.In 2010,earnings per share were $1.80.Which of the following would not result from the stock split?

Which of the following is not a category within accumulated other comprehensive income?

For the income statement under IFRS,there is a required format.

The term primary analysis is used to describe consistent and conservative analysis.

Comprehensive income is net income plus the periods change in accumulated other comprehensive income.

Earnings per share is the earnings per share of outstanding common stock.

IFRS allows for alternative performance measures to be presented in the income statement that are not allowed by U.S.GAAP.

The legality of distributions to stockholders is governed by federal law.

Which of the following will be disclosed in the reconciliation of retained earnings?

Introduction to Financial Reporting

Introduction to Financial Statements and Other Financial Reporting Topics

Balance Sheet

Basics of Analysis

Liquidity of Short-Term Assets;related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, utilities, oil and Gas, transportation, insurance, real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

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