Exam 14: The Corporate Income Statement and the Statement of Stockholders Equity

Colfax Corporation had a Retained Earnings balance on January 1, 2009, of $720,000; declared cash dividends during 2009 in the amount of $123,000, of which $30,000 were not paid until 2010; and reported an ending balance of Retained Earnings of $1,020,000. Based on these facts alone, net income for 2009 for Colfax Corporation must have been

Which of the following would have the least likelihood of being treated as an extraordinary item?

If only common stock is outstanding, total stockholders' equity divided by the number of shares of common stock outstanding is called the

Ballard Corporation has retained earnings of $200,000. It has 5,000 shares of 6 percent, $100 par value preferred stock outstanding that is callable at 102. The preferred stock is cumulative, and one year of dividends is in arrears. It also has 10,000 shares of $50 par value common stock outstanding. Assume all stock is issued at par. The book value of each share of common stock is

A gain on the sale of an asset is a component of income from operations.

Which of the following has an effect on total stockholders' equity?

On December 31, 2009, Kallman Corporation had 160,000 shares of common stock issued and outstanding. On April 1, 2010, an additional 40,000 shares of common stock were issued for cash. During 2010, Kallman declared and paid dividends of $150,000 on its 20,000 shares of nonconvertible preferred stock. Net income for 2010 amounted to $400,000. Kallman's earnings per share of common stock (rounded to the nearest cent) for 2010 are

Indicate on the blanks below the effect (I = increase, D = decrease, NE = no effect) of a stock split on each of the items listed. _____ 1. Assets _____ 2. Balance of Common Stock account _____ 3. Total contributed capital _____ 4. Total retained earnings _____ 5. Total stockholders' equity _____ 6. Par value per share _____ 7. Total number of shares outstanding

Which of the following items will not be disclosed on a statement of stockholders' equity?

Specifically, what gives rise to the Deferred Income Taxes account?

Which of the following items appears on the corporate income statement before Income from Continuing Operations?

The stockholders' equity of Westester Corporation as of December 31, 2010, is as follows: The preferred stock has one year's dividends in arrears. a. Compute the book value per share of preferred stock and the book value per share of common stock. (Round to the nearest cent.) b. Assume the preferred stock has two years' dividends in arrears. Compute the book value per share of preferred stock and the book value per share of common stock. (Round to the nearest cent.)

Kappa Corporation had a taxable income of $69,000 for 2010. Calculate the income taxes expense of Kappa Corporation on the basis of the following tax schedule:

The results of discontinued operations appear below extraordinary gains and losses in the income statement.

All of the following are synonymous with retained earnings except

The following facts pertain to the stockholders' equity section of the balance sheet of Vanalden Corporation: During 2010, Vanalden declared and distributed a stock dividend. Also during 2010, Vanalden declared and paid cash dividends of $10,000. There were no changes in the number of shares of stock issued and outstanding during the period except for the change caused by the stock dividend. Calculate the amount of net income reported by Vanalden for 2010.

A small stock dividend normally results in a transfer from Retained Earnings to Contributed Capital of an amount equal to the par value of the stock.

Compute the book values per share for (a) preferred and (b) common stock for Klemperer Corporation, whose stockholders' equity as of December 31, 2010, was as follows.

Both restructurings and write-downs reduce current operating income.

Write-downs and restructurings are often an indication of bad management decisions in the past.