Question

Presented below is information related to Windsor Company at December 31, 2020, the end of its first year of operations.
Sales revenue $333,190
Cost of goods sold 138,130
Selling and administrative expenses 50,100
Gain on sale of plant assets 28,720
Unrealized gain on available-for-sale debt investments 10,340
Interest expense 6,350
Loss on discontinued operations 13,060
Dividends declared and paid 4,950
Compute the following:________.a) Income from operations b) Net Income c) Net income from attributable to Viel Company's controlling shareholds d) Comprehensive income e) Retained earnings balance at December 31, 2014

Answer 1

Answer:

(A) $144,960

(B) $109,890

(C) $107,170

(D) $102,220

Explanation:

(A) The income from operation can be calculated as follows

= Sales - cost of good sold -selling and administrative expenses

= $333,190-$138,130-$50,100

= $144,960

(B) The net income can be calculated as follows

= Sales - gain in sales of plant assets -cost of good sold-selling and administrative expense - interest expenses

= $333,190-28,720-138,130-50,100-6,350

= $109,890

(C) The comprehensive income can be calculated as follows

= Net income + unrealized gain on available for sale investment -loss in discontinued operation

= $109,890+ $10,340-$13,060

= $107,170

(D) The retained earnings balance at December 31, 2014 can be calculated as follows

= comprehensive income - Dividend declared and paid

= $107,170 - $4950

= $102,220