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Exam 4: The Income Statement, comprehensive Income, and the Statement of Cash Flows

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Question 41

Multiple Choice

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Shively Mfg.Co.sold for $18,000 equipment that cost $40,000 and had a book value of $30,000.Shively would report:

A) Operating cash inflows of $18,000.
B) Operating cash inflows of $8,000.
C) Financing cash inflows of $18,000.
D) Investing cash inflows of $18,000.

E) B) and D)
F) A) and C)

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Question 42

Multiple Choice

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Provincial Inc.reported the following before-tax income statement items: Provincial has a 30% income tax rate. Provincial would report the following amount of income tax expense as a line item in the income statement:

A) $198,000.
B) $180,000.
C) $168,000.
D) $150,000.

E) None of the above
F) B) and D)

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Question 43

Multiple Choice

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Reporting comprehensive income according to International Financial Reporting Standards can be accomplished by each of the following methods except:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

The principal benefit of separately reporting discontinued operations is to enhance:

The difference between single-step and multiple-step income statements is primarily an issue of:

Jacobsen Corporation prepares its financial statement applying International Financial Reporting Standards.During its 2016 fiscal year,the company reported before-tax income of $620,000.This amount does not include the following two items,both of which are considered to be material in amount: The company's income tax rate is 40%.In its 2016 income statement,Jacobsen would report income from continuing operations of:

What is Misty's income from continuing operations?

Give an example of a major investing activity cash outflow that would be reported in the statement of cash flows for a manufacturing company.

Use the following to answer questions On September 1,2016,Jacob Furniture Mart enters into a tentative agreement to sell the assets of its office equipment division.This division qualifies as a component of the entity according to GAAP regarding discontinued operations.The division's contribution to Jacob's operating income for 2016 was a $3 million loss before taxes.Jacob has an average tax rate of 30%. Required: Consider independently the appropriate accounting by Jacob under the three scenarios below. -Scenario 1: Assume that Jacob sold the division's assets on December 31,2016,for $24 million.The book value of the division's assets was $19 million at that date.Under these assumptions,what would Jacob report in its 2016 income statement regarding the office equipment division? Explain where this information would be presented.

Suppose that the Footwear Division's assets had not been sold by December 31,2016,but were considered held for sale.Assume that the fair value of these assets at December 31 was $80 million.In the 2016 income statement for Foxtrot Co. ,under discontinued operations it would report a:

The distinction between operating and nonoperating income relates to:

Rowdy's would report net cash inflows (outflows) from financing activities in the amount of:

Briefly explain when and why intraperiod tax allocation is necessary.

Give an example of a noncash financing and investing activity and explain when and how it would be reported in the financial statements.

Comprehensive income is the change in equity from:

Use the following to answer questions Plano had 50,000 shares of stock outstanding throughout the year.Income tax expense has not yet been accrued.The effective tax rate is 30%. -Required: Prepare a single-step income statement with earnings per share disclosure.

Use the following to answer questions The trial balance of Kroeger Inc.included the following accounts as of December 31,2016: Kroeger had 300,000 shares of stock outstanding throughout the year.Income tax expense has not yet been accrued.The effective tax rate is 40%. -Required: Prepare a 2016 separate statement of comprehensive income for Kroeger Inc.

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Use the following to answer questions Plano had 50,000 shares of stock outstanding throughout the year.Income tax expense has not yet been accrued.The effective tax rate is 30%. -Required: Prepare a multiple-step income statement with earnings per share disclosure.