The following is a partial year-end adjusted trial balance.
Account Title
Sales revenue
Loss on sale of investments
Interest revenue
Loss from flood damage (unusual and infrequent)
Cost of goods sold
General and administrative expenses
Restructuring costs
Selling expenses
Income tax expense
Debits
Credits
326,000
22,900
4,000
47,500
165,000
42,000
48,500
25,300
0
Income tax expense has not yet been accrued. The income tax rate is 42%.
(a) Determine the operating income (loss). (Loss amount should be indicated by a minus sign.Omit
the "$" sign in your response.)
Operating income (loss)
$
(b) Determine the income (loss) before any separately reported items. (Loss amount should be
indicated by a minus sign.Omit the "$" sign in your response.)
Income (loss)
$
(c) Determine the net income (loss). (Loss amount should be indicated by a minus sign. Omit the
"$" sign in your response.)
Net income (loss)
$
The following are partial income statement account balances taken from the December 31, 2011, yearend trial balance of White and Sons, Inc.: restructuring costs, $309,000; interest revenue, $49,000; loss
from earthquake (unusual and infrequent), $412,000; and loss on sale of investments, $69,000. Income
tax expense has not yet been accrued. The income tax rate is 40%.
Prepare the lower portion of the 2011 income statement beginning with $869,000 income before income
taxes and extraordinary item. Include appropriate basic EPS disclosures. The company had 114,000
shares of common stock outstanding throughout the year. (Input all amounts as positive values
except losses which should be indicated by a minus sign. Round your "EPS" answers to 2
decimal places. Omit the "$" sign in your response.)
WHITE AND SONS, INC.
Partial Income Statement
For the Year Ended December 31, 2011
Income before income taxes and extraordinary item
$
(Click to select)
Income before extraordinary item
Extraordinary item:
(Click to select)
(Click to select)
$
Earnings per share:
Income before extraordinary item
$
Loss (Gain) from earthquake
Net income (loss)
$
On December 31, 2011, the end of the fiscal year, California Microtech Corporation completed the sale
of its semiconductor business for $10.6 million. The business segment qualifies as a component of the
entity according to GAAP. The book value of the assets of the segment was $8.6 million. The operating
loss of the segment during 2011 was $3.68 million. Pretax income from continuing operations for the
year totaled $6.01 million. The income tax rate is 33%.
Prepare the lower portion of the 2011 income statement beginning with pretax income from continuing
operations. Ignore EPS disclosures. (Enter your answers in dollars, not millions of dollars. Input all
amounts as positive values except losses which should be indicated by a minus sign.Omit the
"$" sign in your response.)
CALIFORNIA MICROTECH CORPORATION
Partial Income Statement
For the Year Ended December 31, 2011
Income from continuing operations before income taxes
$
(Click to select)
Income from continuing operations
$
Discontinued operations:
(Click to select)
$
(Click to select)
(Click to select)
(Click to select)
$
$
The following is a partial trial balance for General Lighting Corporation as of December 31, 2011:
Account Title
Sales revenue
Rental revenue
Loss on sale of investments
Loss from flood damage (event is both unusual and infrequent)
Cost of goods sold
Loss from write-down of inventory due to obsolescence
Salaries expense
Depreciation expense
Interest expense
Rent expense
Debits
Credits
2,408,000
85,500
17,000
128,250
1,229,925
272,000
307,404
102,468
96,188
51,234
369,000 shares of common stock were outstanding throughout 2011. Income tax expense has not yet
been accrued. The income tax rate is 25%.
Required:
(1)Prepare a single-step income statement for 2011, including EPS disclosures. (Input all amounts as
positive values except losses which should be indicated by a minus sign. Round EPS answers
to 2 decimal places. Omit the "$" sign in your response.)
GENERAL LIGHTING CORPORATION
Income Statement
For the Year Ended December 31, 2011
Revenues and gains:
(Click to select)
$
(Click to select)
Total revenues and gains
$
Expenses and losses:
$
Total expenses and losses
Income before extraordinary item
Extraordinary item:
$
(Click to select)
(Click to select)
$
Earnings per share:
Income before extraordinary item
$
Extraordinary gain (loss)
Net income (loss)
$
(2)Prepare a multiple-step income statement for 2011, including EPS disclosures. (Input all amounts as
positive values. Losses and expenses other than operating expenses should be indicated with
a minus sign. Round EPS answers to 2 decimal places. Omit the "$" sign in your response.)
GENERAL LIGHTING CORPORATION
Income Statement
For the Year Ended December 31, 2011
(Click to select)
$
(Click to select)
(Click to select)
Operating expenses:
$
Total operating expenses
(Click to select)
Other income (expense):
Total other income (expense), net
Income before taxes and extraordinary item
(Click to select)
Income before extraordinary item
Extraordinary item:
(Click to select)
(Click to select)
$
Earnings per share:
Income before extraordinary item
$
Extraordinary gain (loss)
Net income (loss)
$
Presented below are the 2011 income statement and comparative balance sheets for Santana
Industries.
SANTANA INDUSTRIES
Income Statement
For the Year Ended December 31, 2011
($ in thousands)
Sales
revenue
Service
revenue
$
14,100
3,800
Total
revenue
Operating
expenses:
Cost of
goods sold
Selling
General
and
administrative
$
7,050
2,300
1,400
Total
operating
expenses
10,750
Operating
income
Interest
expense
14,550
200
Income
before
income taxes
Income tax
expense
6,950
2,780
Net income
$
Balance
Sheet
Information
($ in
thousands)
Assets:
Cash
Accounts
receivable
Inventory
Prepaid rent
Plant and
17,900
4,170
Dec. 31,
2011
$
9,865
Dec. 31,
2010
$
2,200
3,000
2,600
4,700
125
16,200
2,800
250
15,000
equipment
Less:
Accumulated
depreciation
Total
assets
Liabilities
and
shareholder
s' equity:
Accounts
payable
Interest
payable
Unearned
service
revenue
Income
taxes
payable
Loan
payable (due
12/31/2014)
Common
stock
Retained
earnings
Total
liabilities and
shareholders'
equity
(6,525)
(5,625)
$
27,365
$
17,225
$
1,800
$
900
$
120
0
700
500
650
900
6,000
0
9,000
9,000
9,095
5,925
27,365
$
17,225
Additional information for the 2011 fiscal year ($ in thousands):
1.Cash dividends of $1,000 were declared and paid.
2.Equipment costing $3,000 was purchased with cash.
3.Equipment with a book value of $1,000 (cost of $1,800 less accumulated depreciation of $800) was
sold for $1,000.
4.Depreciation of $1,700 is included in operating expenses.
Required:
Prepare Santana Industries' 2011 statement of cash flows, using the indirect method to present cash
flows from operating activities. (Enter your answers in thousands. Amounts to be deducted should
be indicated with minus sign. Omit the "$" sign in your response.)
SANTANA INDUSTRIES
Statement of Cash Flows
For the Year Ended December 31, 2011
($ in thousands)
Cash flows from operating activities:
(Click to select)
$
Adjustments for noncash effects:
(Click to select)
Changes in operating assets and liabilities:
Net cash flows from operating activities
$
Cash flows from investing activities:
Net cash flows from investing activities
Cash flows from financing activities:
Net cash flows from financing activities
(Click to select)
Cash, January 1
Cash, December 31
$