Question

Hendrik, Inc., a retail company, has the following data for the year ended December 31, 2019:

                  Sales Revenue          $600,000

                  Pretax loss from operation of discontinued division 15,000

                  Cost of goods sold           165,000

                  Pretax gains from foreign currency translation          30,000

                  pretax deferred loss on derivative           50,000

                 Pretax loss on disposal of discontinued division 10,000

                  Selling expenses            15,000

                  Administrative expenses            35,000

                  Interest revenue                     98,000

                   Loss on write-down of obsolete inventory 10,000

                  Shares of common stock outstanding, 10,000 shares.

                  Tax rate of 30% on all items

Instructions

Prepare a multiple-step income statement for Hedrick, Inc. for the year ended December 31, 2019 including earnings per share, and a comprehensive income statement (starting with Net Income).

Answer 1

Solution: