User Account

All Pages

Prepare a multiple step income statement for 2010 for howell

Assignment Help Finance Basics
Reference no: EM131132522

Shown below is an income statement for 2010 that was prepared by a poorly trained bookkeeper of Howell Corporation.

Howell Corporation

INCOME STATEMENT

31-Dec-10

Sales revenue ..................... $945,000.00

Investment revenue ................... $19,500.00

Cost of merchandise sold ................. $(408,500.00)

Selling expenses .................... $(145,000.00)

Administrative expense ................. $(215,000.00)

Interest expense ..................... $(13,000.00)

Income before special items ................ $183,000.00

Special items

Loss on disposal of a component of the business ..... $(30,000.00)

Major casualty loss (extraordinary item) ........... $(70,000.00)

Net federal income tax liability ............... $(24,900.00)

Net income ........................ $58,100.00

Instructions

Prepare a multiple-step income statement for 2010 for Howell Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Howell Corporation has 65,000 shares of common stock authorized and issued there are 15,000 shares of treasury stock and has a 30% federal income tax rate on all tax related items. Round all earnings per share figures to the nearest cent.

Reference no: EM131132522

Questions Cloud

How many canadian dollars will it take to buy a set of dish : Suppose the U.S. dollar price of the Canadian dollar is $.75. How many Canadian dollars will it take to buy a set of dishes selling for $60 in Detroit, Michigan?
If the marr is develop a grap and choice table : The annual net cash flow series vary due to differences in maintence, labor costs transportation charges, etc. If the MARR is develop a grap and choice table. Assume do nothing is anoption
What is the beta what is the required return : If the risk-free rate is 8% & the market risk premium is 10%, what is the beta? What is the required return?
The expected return for the next year will depend on market : Matthew holds a two-stock portfolio that invests in the stocks of Bland Corp. & Big T Burgers and Fries Co. Bland Corp. has an allocation of 75% in Matthew's portfolio. The expected return for the next year will depend on the market condition.
Prepare a multiple step income statement for 2010 for howell : Prepare a multiple-step income statement for 2010 for Howell Corporation that is presented in accordance with generally accepted accounting principles. Howell Corporation has 65,000 shares of common stock authorized and issued there are 15,000 shares..
What is the cost of common from retained earnings : Rivoli Inc. hired you as a consultant to help estimate its cost of common equity. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of common from retained e..
What is the value of each company before the merge : What is the value of each company before the merger? What are the values of each company's debt and equity before the merger? If the companies continue to operate separately, what is the total value of the companies
What is the difference between the yield to maturity : What is the difference between the yield to maturity and the yield to call? When would you expect a bond to be called when interest rates have increased after issuance or decreased after issuance?
What is a ballpark estimate of the value of this common stoc : Assuming that F Corp will live up to these projection forever and expects to pay a $1.54 dividend per share at the end of the coming year, what is a ballpark estimate of the value of this common stock?

Reviews

Write a Review

Finance Basics Questions & Answers

  The limited liability of shareholders

According to Gorton; The limited liability of shareholders in a business creates moral hazard because owners can take risks that can benefit them at the potential expense of creditors. true or false ? why ?

  Questions for a fixed-rate mortgage

Part One. Please answer the following questions for a fixed-rate mortgage as a fully amortizing mortgage loan made for $175,000 at 4.5% interest for 30 years.

  Who can recover an amount for its loss

First National agrees to act as Interstate's mortgagee, and Interstate obtains an insurance policy from Good Hands to cover the property. A fire totally destroys the warehouse.

  Specific identification-fifo-lifo

Specific Identification, FIFO, LIFO, and Weighted-Average Swing Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, were as follows:

  Westfield capital management cos equity investment strategy

westfield capital management co.s equity investment strategy is to invest in companies with low price-to-book ratios

  What is the net revenue per patient

Using the Patient Cost Analysis Form in the Appendix from your "Revenue Management Manual" text (Form A26), calculate your current costs per patient using the following information. What is the Net Revenue per patient?

  Determine the value of equity

Pit Row Auto, a countrywide auto-parts chain, is planning purchasing a smaller chain, Southern Auto. Pit Row's analyst's project that the merger will result in incremental free cash flows and interest tax savings of $2 million in Year 1st

  Description of dividend policy

Discuss the advantages, disadvantages, and types of firms (e.g. growth oriented, mature, etc.) that might be likely to adopt each type of the following dividend policies:

  What will be the level of accounts receivable

If this policy is adopted, the company's average sales will fall by 25%. What will be the level of accounts receivable following the change? Assume a 365-day year. Round your answer to the nearest cent.

  Find total assets turnover ratio

Trentham product currently has $2,000,000 in account receivalbe and its days sales utstanding is thirty-three days. if accounts receivable comprises half of company's current assets and Trentham has $6,000,000 in net fixed assets

  Examine the most common differences affecting employees

Examine the most common differences affecting employees

  Northern national bank will lend the money at 10 percent

logan drilling corp. plans to borrow 200000 for one year. northern national bank will lend the money at 10 percent

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd