CES Exercise 4-9 Presented below is information related to Sandhill Corp. for th
ID: 2553405 • Letter: C
Question
CES Exercise 4-9 Presented below is information related to Sandhill Corp. for the year 2017 Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue $1,341,600 787,300 73,000 49,100 22,200 8,410 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2016 Casualty loss Cash dividends declared Retained earnings at December 31, 2016 Effective tax rate of 34% on all items $84,980 48,500 53,200 44,690 1,034,180 dy Prepare a multiple-step income statement for 2017. Assume that 59,250 shares of common stock are outstanding. (Rous SANDHILL CORP Income Statement RevenueExplanation / Answer
Sandhill Corp Income statement For the year ended December 31 2017 Revenue Net Sales 1341600 Cost of goods Sold 787300 Gross Profit 554300 Operating Expenses Selling Expenses 73000 Administrative Expenses 49100 -122100 Income from operations 432200 Other Revenues and Gains Dividend Income 22200 Interest Revenue 8410 30610 462810 Other Expenses and Losses Write-off of inventory due to obsolescence 84980 Casualty loss 53200 -138180 Income before income tax 324630 Income tax@34% 110374 Net Income 214256 Sandhill Corp Retained Earnings Statement For the Year Ended December 31, 2017 Retained earnings, Jan. 1, as reported 1034180 Correction for overstatement of net income in prior period (depreciation error) (net of $16,490 tax) 32010 Retained earnings, Jan. 1, as adjusted 1002170 Add:Net Income 214256 Less: Dividends declared 44690 Retained earnings, Dec. 31 169566