Comprehensive income and net income

Assignment Help Financial Accounting

Reference no: EM13747311

On January 1, 2014, Richards Inc. had cash and common stock of $62,150. At that date, the company had no other asset, liability, or equity balances. On January 2, 2014, it purchased for cash $20,810 of equity securities that it classified as available-for-sale. It received cash dividends of $4,700 during the year on these securities. In addition, it has an unrealized holding gain on these securities of $6,260 net of tax. Determine the following amounts for 2014: (a) net income; (b) comprehensive income; (c) other comprehensive income; and (d) accumulated other comprehensive income (end of 2014).

Reference no: EM13747311

Questions Cloud

What would be the expected market risk premium based : You expect equity market would provide a return of 12% and will have a standard deviation of 18%. The risk free rate is 4%. What would be the expected market risk premium based on your risk aversion score?

Financial planning for a business : Research, identify, and discuss what financial planning for a business is, why it is important, and what can happen if not done accurately.

Currently evaluating investment in stocks : Your are currently evaluating investment in stocks. The risk free rate is 5% and expected market return is 15%. You are considering investing in one of the following two stocks:

Calculate the degree of operating leverage : Calculate the degree of operating leverage given the following information: sales of $25,000; variable costs $13,000 and operating income of $7,000 for year one, and sales of $40,000; variable costs of $15,000; and operating income of $16,000 for yea..

Comprehensive income and net income : On January 1, 2014, Richards Inc. had cash and common stock of $62,150. At that date, the company had no other asset, liability, or equity balances. On January 2, 2014, it purchased for cash $20,810 of equity securities that it classified as availabl..

Charged to maintenance and repairs expense : Portman Corporation has retained earnings of $693,600 at January 1, 2014. Net income during 2014 was $1,491,000, and cash dividends declared and paid during 2014 totaled $83,700. Prepare a retained earnings statement for the year ended December 31, 2..

Prepare a presentation for pegasus : Prepare a presentation for Pegasus'' senior management team, focusing on anticipated employee reactions to organizational change (including the possibility of layoffs).

Summarize the role of management : Summarize the role of management as it relates to finance in a corporation. In your post address the following:

Cumulative effect of changing the estimated bad debt rate : Vandross Company has recorded bad debt expense in the past at a rate of 1.5% of net sales. In 2014, Vandross decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $382,680 in..

User Account

All Pages