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presented below is information related to Carla Company at December 31,2017, the end of its year...

presented below is information related to Carla Company at December 31,2017, the end of its year of operations

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Answer #1

Assuming the data December 31, 2017,

(a)The Income from operations = Sales revenue - Cost of goods sold - Selling & Admin expenses

= $(312,500 - 126,330 - 51,400)

= $134,770

(b) The Net income = Income from operations + Gain on sale of plant assets - Interest expense - Loss on discontinued operations

= $(134,770 + 27,160 - 5,400 - 12,630)

= $143,900

(c) The Comprehensive income = Net income + Unrealized gain on available-for-sale investments

= $(143,900 + 9,870)

= $153,770

(d) The Retained earnings = Net income - Dividends declared and paid**

= $(143,900 - 4,870)

= $139,030

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