The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the...

80.2K

Verified Solution

Question

Accounting

The following income statement items appeared on the adjustedtrial balance of Foxworthy Corporation for the year ended December31, 2018 ($ in 000s): sales revenue, $21,600; cost of goods sold,$14,150; selling expenses, $2,230; general and administrativeexpenses, $1,130; dividend revenue from investments, $130; interestexpense, $230. Income taxes have not yet been accrued. Thecompany’s income tax rate is 40% on all items of income or loss.These revenue and expense items appear in the company’s incomestatement every year. The company’s controller, however, has askedfor your help in determining the appropriate treatment of thefollowing nonrecurring transactions that also occurred during 2018($ in 000s). All transactions are material in amount.

  1. Investments were sold during the year at a loss of $230.Foxworthy also had unrealized holding losses of $130 for the yearon investments.
  2. One of the company’s factories was closed during the year.Restructuring costs incurred were $1,300.
  3. During the year, Foxworthy completed the sale of one of itsoperating divisions that qualifies as a component of the entityaccording to GAAP regarding discontinued operations. The divisionhad incurred operating income of $730 in 2018 prior to the sale,and its assets were sold at a loss of $1,940.
  4. A positive foreign currency translation adjustment for the yeartotaled $670.


Required:

Prepare Foxworthy’s single, continuous statement ofcomprehensive income for 2018, including earnings per sharedisclosures. Use a multiple-step income statement format. Twomillion shares of common stock were outstanding throughout theyear. (Enter your answers in thousands of dollars, exceptearnings per share. Amounts to be deducted should be indicated witha minus sign. Round EPS answers to 2 decimalplaces.)


Answer & Explanation Solved by verified expert
4.3 Ratings (880 Votes)
FOXWORTHY MANUFACTURING CORPORATION Statement of Comprehensive Income For the Year Ended December 31 2018 in 000s Sales revenue 21600 Cost of goods sold 14150 Gross profit 7450 Operating expenses Selling expenses 2230 General and    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students