Font Paragraph Styles Problem 1 Presented below is information related to Marlin
ID: 2340075 • Letter: F
Question
Font Paragraph Styles Problem 1 Presented below is information related to Marlin Company for 2017. $ 2,250,000 53,000,000 33,000,000 Retained earnings balance, January1, 2017 Sales revenue Cost of goods sold Interest revenue 120,000 Selling and administrative expenses Write-otf of goodwill Income taxestor 2017 Loss on the sale of investments (normal 8,900,000 2,100,000 3,650,000 53,000 recurring) Loss due to hurricane damage Gain on the disposition ot the retail division (net 1,100,000 23,000 of tax) Loss on operations of the retail division (netot 231,000 350,000 125,000 tax) Dividends declared on common stock Dividends declared on preterred stock Instructions Prepar discontinue its e e a multiple-step income statement and a retained earnings statement. Marlin Company decided to ns and to retain its manufacturing and wholesale operations. On September 15, Marin sold the retal operations to Shark Corp. During 2017, there were 700,000 shares of common s outstanding all year is unavailable, may I take a message or can someone else help you? * Hold for me please WeExplanation / Answer
Multiple-step Income Statement Sales Revenue $53,000,000 Cost of Goods Sold $33,000,000 Gross Profit $20,000,000 Operating Expenses: Selling and Administrative expenses $8,900,000 Operating Profit $11,100,000 Non-operating Income/expenses: Interest Revenue $120,000 Write off Goodwil $2,100,000 Loss on the sale of investment $53,000 Loss due to hurricane damage $1,100,000 Total Non-operating expenses $3,133,000 Profit before tax $7,967,000 Income tax $3,650,000 Profit after tax $4,317,000 Loss on operations of the retail division (net of tax) $231,000 Gain on sale of retail division (net of tax) $23,000 Net Loss of retail division $208,000 Net Profit $4,109,000 Statement of retained earnings Common Stock Retained Earn ings Total Balance January 1, 2017 $700,000 $2,250,000 $2,950,000 Net Income $4,109,000 $4,109,000 Dividend - Common Stock ($350,000) ($350,000) Dividend - Preferred Stock ($125,000) ($125,000) Balance December 31, 2017 $700,000 $5,884,000 $6,584,000