159. Given the following information about a corporation's current year activities, answer the questions below:
|
Debit
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Credit
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Sales
|
|
$250,000
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Cost of goods sold
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$90,000
|
|
Other operating expenses
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54,000
|
|
Income from operation of discontinued Division W (net of $9,200 tax)
|
|
30,800
|
Extraordinary loss from hurricane damage (net of $11,000 tax benefit)
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37,000
|
|
Loss from disposal of Division W (net of $15,000 tax benefit)
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45,000
|
|
Unusual loss on sale of equipment
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12,000
|
|
Effect on prior years’ income of changing depreciation methods (net of $4,000 tax)
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13,500
|
|
Compute the amounts that should be reported on the income statement as:
(1) Income from continuing operations.
(2) Income before extraordinary items and cumulative effect of changes in accounting principles.
(3) Net income.
160. Explain where the following item should appear in the financial statements of a corporation:
One of the company's plants was destroyed by an earthquake. The area has never reported an earthquake. The amount of the loss, net of tax, was $850,000.
164. A company has a current ratio of 3.4, total liabilities of $350,240 and long-term notes payable of $120,000. What are total current assets for the company?
165. A company has a current ratio of 1.92, total liabilities of $193,849, long-term notes payable of $85,791, and a quick ratio of .96. What are total current assets for the company?
166. A company has a current ratio of 1.92, total liabilities of $193,849, long-term notes payable of $85,791, and a quick ratio of .96. What are total quick assets for the company?
167. A company has an inventory turnover ratio of 2.81, merchandise inventory for 2014 of $93,303, and average inventory of $83,397. What is the cost of goods sold?
168. A company has an inventory turnover ratio of 2.90, merchandise inventory for 2014 of $46,095, and cost of goods sold of $173,420. What is the average inventory?