The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2024, included the following accounts:
| Account Title | Debits | Credits |
| Sales revenue | $ 2,640,000 | |
| Cost of goods sold | $ 1,560,000 | |
| Selling and administrative expense | 434,000 | |
| Interest expense | 56,000 | |
| Gain on debt securities | 96,000 |
The gain on debt securities is unrealized and classified as other comprehensive income. The trial balance does not include the accrual for income taxes. Lindor’s income tax rate is 25%.
Required:
Prepare a single, continuous multiple-step statement of comprehensive income.
Esquire Comic Book Company had income before tax of $1,650,000 in 2024 before considering the following material items:
- Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $405,000. The division generated before-tax income from operations from the beginning of the year through disposal of $630,000.
- The company incurred restructuring costs of $70,000 during the year.
Required:
Prepare the income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures.
Note: Amounts to be deducted should be indicated with a minus sign.
The Massoud Consulting Group reported net income of $1,376,000 for its fiscal year ended December 31, 2024. In addition, during the year the company experienced a positive foreign currency translation adjustment of $350,000 and an unrealized loss on debt securities of $90,000. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income is displayed net of tax.
Required:
Prepare a separate statement of comprehensive income for 2024.
Note: Amounts to be deducted should be indicated with a minus sign.
Presented below is the 2024 income statement and comparative balance sheet information for Tiger Enterprises.
| TIGER ENTERPRISES | ||
| Income Statement | ||
| For the Year Ended December 31, 2024 | ||
| ($ in thousands) | ||
| Sales revenue | $ 9,000 | |
| Operating expenses: | ||
| Cost of goods sold | $ 3,800 | |
| Depreciation expense | 280 | |
| Insurance expense | 300 | |
| General and administrative expense | 2,200 | |
| Total operating expenses | 6,580 | |
| Income before income taxes | 2,420 | |
| Income tax expense | (968) | |
| Net income | $ 1,452 | |
| Balance Sheet Information ($ in thousands) | December 31, 2024 | December 31, 2023 |
| Assets: | ||
| Cash | $ 380 | $ 240 |
| Accounts receivable | 770 | 870 |
| Inventory | 700 | 640 |
| Prepaid insurance | 90 | 40 |
| Equipment | 2,500 | 2,000 |
| Less: Accumulated depreciation | (920) | (640) |
| Total assets | $ 3,520 | $ 3,150 |
| Liabilities and Shareholders’ Equity: | ||
| Accounts payable | $ 320 | $ 400 |
| Accrued liabilities (for general & administrative expense) | 320 | 440 |
| Income taxes payable | 220 | 190 |
| Notes payable (due 12/31/2025) | 1,040 | 800 |
| Common stock | 980 | 840 |
| Retained earnings | 640 | 480 |
| Total liabilities and shareholders’ equity | $ 3,520 | $ 3,150 |
Required:
Prepare Tiger’s statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments).
Note: Enter your answers in thousands
Duke Company’s records show the following account balances at December 31, 2024:
| Sales revenue | $ 16,600,000 |
| Cost of goods sold | 9,800,000 |
| General and administrative expense | 1,080,000 |
| Selling expense | 580,000 |
| Interest expense | 780,000 |
Income tax expense has not yet been determined. The following events also occurred during 2024. All transactions are material in amount.
- $380,000 in restructuring costs were incurred in connection with plant closings.
- Inventory costing $480,000 was written off as obsolete. Material losses of this type are considered to be unusual.
- It was discovered that depreciation expense for 2023 was understated by $58,000 due to a mathematical error. The amount is considered material.
- The company experienced a negative foreign currency translation adjustment of $280,000 and had an unrealized gain on debt securities of $260,000.
Required:
Prepare a single, continuous multiple-step statement of comprehensive income for 2024. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures.
Note: Amounts to be deducted should be indicated with a minus sign.
Financial statements for Askew Industries for 2024 are shown below (in thousands):
| 2024 Income Statement | |
| Net sales | $ 8,900 |
| Cost of goods sold | (6,275) |
| Gross profit | 2,625 |
| Operating expenses | (2,075) |
| Interest expense | (190) |
| Income tax expense | (144) |
| Net income | $ 216 |
| Comparative Balance Sheets | ||
| December 31 | ||
| 2024 | 2023 | |
| Assets | ||
| Cash | $ 590 | $ 490 |
| Accounts receivable | 590 | 390 |
| Inventory | 790 | 590 |
| Property, plant, and equipment (net) | 1,900 | 2,000 |
| $ 3,870 | $ 3,470 | |
| Liabilities and Shareholders’ Equity | ||
| Current liabilities | $ 1,040 | $ 790 |
| Bonds payable | 1,350 | 1,350 |
| Common stock | 590 | 590 |
| Retained earnings | 890 | 740 |
| $ 3,870 | $ 3,470 | |
Required:
Calculate the following ratios for 2024.
Note: Consider 365 days a year. Round your intermediate calculations and final answers to 2 decimal places.