Question

An income statement consists of the following line items (in millions): Revenue 4,356 Cost of goods...

An income statement consists of the following line items (in millions):
Revenue
4,356
Cost of goods sold
3,487
Operating expenses
428
Interest income
56
Interest expense
132
The firm pays no taxes. Prepare a reformulated income statement that distinguishes items involved in operations from those involved in financing activities.

Homework Answers

Answer #1

Solution:

                                            Reformulated Income Statement

Sl.No.

Particulars

Amount in Millions of Dollars

1

Operating Revenue

$ 4356

2

Less : Cost of goods sold

($ 3487)

3

Less : Operating Expenses

($ 428)

4

Net Income from Operating activities - ( A)

$441

5

Interest Income

$ 56

6

Less : Interest Expense

($ 132)

7

Net Income from Financing activities - (B)

($ 76)

8

Comprehensive Income – (A) + (B)

$ 365

Thus the Income from Operating activities is = $ 441

The income from Financing activities is = ($ 76 )

The Comprehensive income is = $ 365

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Make an income statement with the following: Sales Revenue Net Income    Net Income from continuing...
Make an income statement with the following: Sales Revenue Net Income    Net Income from continuing operations Cost of Goods Sold Gain/Loss on sale of assets Gross Profit Gain/Loss from discontinued operations, net of tax Interest Revenue Dividend Revenue selling, general, and administrative expenses Operating Income Interest Expense Income before taxes Income tax expense
Multiple-Step Income Statement and Profit Margin The following income statement items, arranged in alphabetical order, are...
Multiple-Step Income Statement and Profit Margin The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the current year: Advertising expense $1,500 Interest expense $1,410 Commissions expense 2,652 Interest revenue 1,412 Cost of goods sold 29,269 Rent revenue 6,551 Depreciation expense - office building 2,760 Salaries and wages expense—office 11,508 Income tax expense 1,499 Sales revenue 48,090 Insurance expense - salesperson’s auto 2,232 Supplies expense—office 809 Required: Assume that Shaw Corporation classifies...
INCOME STATEMENT -  ALL NUMBERS IN THOUSANDS Revenue 12/31/17 12/31/16 Total Revenue 177,866,000 135,987,000 Cost of Revenue...
INCOME STATEMENT -  ALL NUMBERS IN THOUSANDS Revenue 12/31/17 12/31/16 Total Revenue 177,866,000 135,987,000 Cost of Revenue 111,934,000 88,265,000 Gross Profit 65,932,000 47,722,000 Operating Expenses Research Development 22,620,000 16,085,000 Selling General and Administrative 38,992,000 27,284,000 Non Recurring - - Others 214,000 167,000 Total Operating Expenses 173,760,000 131,801,000 Operating Income or Loss 4,106,000 4,186,000 Income from Continuing Operations Total Other Income/Expenses Net -304,000 -390,000 Earnings Before Interest and Taxes 4,106,000 4,186,000 Interest Expense -848,000 -484,000 Income Before Tax 3,802,000 3,796,000 Income Tax...
Prepare a common-size income statement (component percentages) for the following income statement. Dollar Amount Sales revenue...
Prepare a common-size income statement (component percentages) for the following income statement. Dollar Amount Sales revenue $200,000 Cost of goods sold $80,000 Gross profit $120,000 Operating expenses $101,000 Interest expense $4,000 Income before income tax $15,000 Income tax expense (rate 20%) $3,000 Net income
Common-Size Income Statements Following is the income statement for Target Corporation. Prepare Target’s common-size income statement...
Common-Size Income Statements Following is the income statement for Target Corporation. Prepare Target’s common-size income statement for the fiscal year ended January 31, 2015. (Round your answers to one decimal place.) ($ millions) Fiscal year ended January 31, 2015 Sales revenue $72,618 Cost of sales 51,278 Selling, general and administrative expenses 14,676 Depreciation and amortization 2,129 Earnings from continuing operations before interest and income taxes 4,535 Net interest expense 882 Earnings from continuing operations before income taxes 3,653 Provision for...
Income Statement For the year ended December​ 31, 2019 Sales Revenue ​$347,000 Cost of Goods Sold...
Income Statement For the year ended December​ 31, 2019 Sales Revenue ​$347,000 Cost of Goods Sold ​(78,000) Gross Profit ​$269,000 Selling and Administrative Expenses ​(43,900) Operating Income ​225,100 Gain on Sale of Equipment ​5,500 Net Income ​$230,600 All of the​ company’s sales are made on account. At the beginning of the​ year, the Accounts Receivable balance was​ $53,500. The balance had decreased to​ $50,200 by​ year-end. All of the​ company’s inventory purchases are made on account. Accounts Payable consists solely...
Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods...
Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue's operating income is equal to
The income statement for Camire, Inc. appears below: Revenue $130,000 Cost of goods sold 50,000 Depreciation...
The income statement for Camire, Inc. appears below: Revenue $130,000 Cost of goods sold 50,000 Depreciation expense 32,000 Other operating expenses 8,000 Income tax expense 14,000 Net income $ 26,000 During the year, Camire Inc.’s cash increased by $4,200, accounts receivable increased by $1,200, inventory decreased by $3,800, and accounts payable increased by $400. How much is the company's cash flow from operations? A. $65,200 B. $58,000 C. $59,000 D. $61,000
Your firm has the following income statement items: sales of $55,609,373; income tax of $2,120,584; operating...
Your firm has the following income statement items: sales of $55,609,373; income tax of $2,120,584; operating expenses of $12,412,399; cost of goods sold of $31,111,667; and interest expense of $214,767. What is the amount of the firm's EBIT?
Find the ratios for the given Income Statement All numbers in thousands Revenue 12/31/2018 12/31/2017 Total...
Find the ratios for the given Income Statement All numbers in thousands Revenue 12/31/2018 12/31/2017 Total Revenue 243,770,000,000 239,575,376,000 Cost of Revenue 132,390,000,000 129,290,661,000 Gross Profit 111,380,000,000 110,284,715,000 Operating Expenses Research Development 18,350,000,000 16,355,612,000 Selling General and Administrative 34,140,000,000 38,947,445,000 Non Recurring - - - Others - - Total Operating Expenses 184,880,000,000 185,930,338,000 Operating Income or Loss 58,890,000,000 53,645,038,000 Income from Continuing Operations Total Other Income/Expenses Net 2,270,000,000 2,550,929,000 Earnings Before Interest and Taxes 58,890,000,000 53,645,038,000 Interest Expense - -655,402,000...