Question

Presented below is financial information related to Abdallah Company:

            Revenue                                                                                     SAR950,000

            Income from continuing operations                                                  120,000

            Comprehensive income                                                                     140,000

            Net income                                                                                        105,000

            Income from operations                                                                     260,000

            Selling and administrative expenses                                                 600,000

            Income before income tax                                                                 240,000

Compute the following:

(a) other income and expense,

(b) financing costs,    

           (c) income tax,

(d) discontinued operations,

(e) other comprehensive income.

Answer 1

Solution a:

Other Income = Income From Operation = 260,000

Other expense = Selling and administrative expenses = 600,000

Solution b:

Financing Costs = (Revenue - Selling and administrative expense) - Income before income tax

= (950,000 - 600,000) - 240,000 = 110,000

Solution c:

Income Tax = Income before income tax -Net income = 240,000 -105000 = 135,000

Solution d:

Dircontinued operations = Income From operations - Income from Continuing operations

= 260,000 -120,000 = 140,000

Solution e:

Other comprehensive income = Comprehensive income - Net income

= 140,000 - 105,000 = 35,000