Below is the Retained Earnings account for the year 2020 for Metlock Corp. Retained earnings, January 1, 2020 $263,980 Add: Gain on sale of investments (net of tax) $47,580 Net income 90,880 Refund on litigation with government, related to the year 2017 (net of tax) 27,980 Recognition of income earned in 2019, but omitted from income statement in that year (net of tax) 31,780 198,220 462,200 Deduct: Loss on discontinued operations (net of tax) 41,380 Write-off of goodwill (net of tax) 66,380 Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2020 (net of tax) 29,580 Cash dividends declared 38,380 175,720 Retained earnings, December 31, 2020 $286,480. (a)Prepare a corrected retained earnings statement. Acadian Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2014 to compute net income. (b) State where the items that do not appear in the corrected retained earnings statement should be shown.
Answers: 1
Another question on Business
Business, 21.06.2019 19:00
Ashare stock is a small piece of ownership in a company ture or false
Answers: 2
Business, 22.06.2019 15:40
Brandt enterprises is considering a new project that has a cost of $1,000,000, and the cfo set up the following simple decision tree to show its three most likely scenarios. the firm could arrange with its work force and suppliers to cease operations at the end of year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. how much is the option to abandon worth to the firm?
Answers: 1
Business, 22.06.2019 17:30
Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $
Answers: 2
Business, 22.06.2019 17:30
After the embarrassing sign incident at the restaurant you own, you decide to offer employees a six-week fundamental writing skills workshop. a local business communication instructor, who has experience teaching writing skills at treleaven community college, will facilitate the sessions. to encourage employees to attend these optional sessions, write an email that explains why you’re offering the workshop and why employees should participate.
Answers: 2
You know the right answer?
Below is the Retained Earnings account for the year 2020 for Metlock Corp. Retained earnings, Januar...
Questions
Business, 12.12.2019 04:31
Computers and Technology, 12.12.2019 04:31
