1. P4-1DICKINSON COMPANYIncome Statementfor the year
ended in December 31, 2014ParticularsAmountSales$
25,000,000.00On the income statement you must subract sales
from cost of goods sold and you come up withCost of goods
sold$ (16,000,000.00)9,000,000. Then you take the 9,000,000
from the selling & Administrative Expense which gives you you
income from operation of 4,300,000. Now you add gain on
slaes of investment withGross Profit$ 9,000,000.00interest
revenue which come out to 180,000. You have your other
expenses write off goodwillSelling & Administrative Expenses$
(4,700,000.00)which is 820,000 you add that with you income
from continuing operation before incometax of 3,660,000 then
subtrack income tax of 1,244,000, that will give you 2,416,000.
NowIncome from operations$ 4,300,000.00with discontinue
operation you would add loss on disposal net of tax with loss of
operations,net of tax which is 440,000 and 90,000 that brings
you 530,000 now you subract 2,416,000 fromOther revenues &
gains:530,000 and you get 1,886,000 that is your income before
extraordinary items, subtract extraordinary Gain on sales of
investments$ 110,000.00item, loss from flood damage, net of
tax. You subtract 390,000 and you net incom 1,496,000Interest
revenue$ 70,000.00$ 180,000.00Other expenses &
losses:Write-off goodwill$ 820,000.00Income from continuing
operations before income tax$ 3,660,000.00Income Tax$
(1,244,000.00)Income from continuing operations$
2,416,000.00Discontinued Operations:Loss on disposal, net of
tax$ 440,000.00Loss of operations, net of tax$ 90,000.00$
530,000.00Income before Extraordinary items$
1,886,000.00Extraordinary item, loss from flood damage, net of
tax$ (390,000.00)Net Income$ 1,496,000.00Earnings per
share:Income from continuing operations$ 4.67Discontinued
operations:Loss on disposal, net of tax$ (0.88)Loss of
operations, net of tax$ (0.18)$ (1.06)Income before
extraordinary item$ 3.61Extraordinary loss, net of tax$

2. (0.78)Net Income$ 2.83Dickinson CompanyRetained Earnings
Statement For the year ended January 1,
2014ParticularsAmountRetained Earnings, January 1$
980,000.00Net Income$ 1,496,000.00Dividends:Common
Stock$ 250,000.00Preferred Stock$ 80,000.00$
330,000.00Reatined Earnings, December 31$
2,146,000.002,416,000-80,000/500,000=4.671,886,000-
80,000/500,000=3.611,496,000-80,000/500,000=2.83
E4-13EShiga Naoya CorporationIncome Statement31-Dec-14net
incomeIncome from continuing operation before
taxes23,650,000Income tax 23,650,000*35%8,277,500Income
from continuing operation15,372,500Discount operation (loss
before taxes)3,225,000Less income tax
3,225,000*35%1,128,7502,096,250net
income13,276,250Perferred dividends
declared1,075,000Common share outstanding4,000,000Earning
Per ShareIncome from continuing operations15,372,500 - $
1,075,000/4,000,0003.57Discontinued operations, net of
tax2,096,250/4,000,0000.52net income13,276,250 -
$1,075,000/4,000,0003.05When doing an income statement you
have to subtract the income tax from the continuing
operationthen you subtract the discount operation from tax rate
then you would come up with net incomeput the perferred
dividends declared including thhe common share
outstandingalso take the income continuing operation
15,372,500 subtract 1,075,000 divide it 4,000,000do the same
with discontinued operation 2,096,250 divide it by
4,000,000when it comes to net income subtract 13,276,250 from
1,075,000 divide by 4,000,000
E4-16C. Reither CompanyStatement of stock equityFor the
ended in December 31, 2014totalretained earningsAccumulated
other comprehensive incomecommon stockbeginning
balance520,00090,00080,000350,000comprehensive incomenet
income120,000120,000other comprehensive incomeunrealize
holding loss-60,000-60,000comprehensive incomedividends-
10,000-10,000570,000200,00020,000350,000700,000-500,000-

3. 80,000=120,000
E5-12Scott Butler CorporationBalance sheet31-Dec-14current
assetcash197,000debt investment (trading)153,000account
receivable435,000allowances for doubtful accounts-
25,000410,000inventory597,000total current asset1,357,000long
term investmentdebt investment 299,000equity investment
277,000total long term investment576,000property, plants and
equipmentland260,000buildings1,040,000accumulated depr.
Buildings-152,000888,000equipment600,000accumulated depr.
Equip.-60,000540,000total property, plants and
equipment1,688,000tangible
assetfranschises160,000patents195,000total tangible
asset355,0003,976,000Liabilities and Stockholders’
Equitycurrent liabilitiesaccounts payable455,000notes payable
(short-term)90,000dividens payable136,000accrued
liabilities96,000total current liabilities777,000long term
debtnotes payable (long-term)900,000bonds
payable1,000,000total long-term liabilities1,900,000total
liabilities2,677,000stockholder's equitypaid in capitalcommon
stock ($5 par)1,000,000paid in capital in excess of
par80,0001,080,000retained earnings410,000total retained
earning and paid in capital1,490,000treasury stock-191,000total
stockholder's equity1,299,000total liabilities and stockholder's
equity3,976,000computation of retained earningssales
revenue8,100,000investment revenue63,000gain
(extraordinary)80,000cost of good sold-4,800,000selling
expenses-2,000,000administrative expense-900,000interest
expense-211,000net income332,000beginnings retained
earnings78,000net income332,000ending retained
earnings410,000Or ending retained earnings can be computed as
follows:total stockholder's equity-1,299,000treasury
stock191,000paid in capital in excess of par-1,080,000410,000
E5-16SHABBONA CORPORATIONStatement of Cash
FlowsFor the Year Ened December 31, 2014Cash flows from
operating activitiesnet incom125,000Adjustments to reconcile
net incometo net cash provided by operatingactivitiesdepr.

4. Expense27,000increase in accounts receivable-
16,000inventory9,000account payable-13,0007,000net cash
provided by operating activities132,000cash flows from
investing activitiessale of land39,000purchase of equipment-
60,000net cash used by investing activities-21,000cash flows
from financing activitiespayment of cash dividends-60,000net
increase in cash51,000cash at beginning of year22,000cash at
end of year73,000noncash investing and financing
activitiesissued common stock to retire 50,000 of bonds
outstanding132,000/(34,000+47,000)/2=3.26132,000/(184,000+
247,000)/2=0.61Free cash flow12,000net cash provided by
operating activities132,000less: purchas of equipment-
60,000dividend-60,00012,000