Question

Presented below is information related to Crane Company at December 31, 2020, the end of its first year of operations.

Sales revenue $316,550
Cost of goods sold 150,400
Selling a nd administrative expenses 53,900
Gain on sale of plant assets 30,560
Unrealized gain on available
-for-sale debt investments 9,460
Interest expense 5,840
Loss on discontinued operations 11,990
Dividends declared and paid 4,730

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, 2020.

Answer 1

Answer:

Follows are the solution to the given points:

Explanation:

In point a:

Formula:

$= \text{sales-Cost of product sold -Selling and Administrative expense}$

$=316,550-150,400-53,900\\\\=112,250$

In point b:

Formula:

$=\text{Income from operation + Gain on sale of plant assets} - \text{Interest Expense} -\text{Loss from discontinued operations}\\\\=112,250+30,560- 5,840- 11,990\\\\=124,980$

In point c:

Formula:

$=\text{Net Income- Allocation to noncontrolling interest}$

$= 124,980 - \text {missing value}$

In point d:

Formula:

$=\text{Net Income+ Unrealized gain on available for sale debt investments}\\\\= 124,980- 9,460\\\\=115,520$

In point e:

Formula:

$=\text{Net Income - Dividends declared and paid}\\\\=124,980- 4730\\\\=120,250$