Financial Reporting and Analysis财务报告与分析-
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Chapter 4
Income Statement
TO THE NET
1. a. $19,400,000
Equity earnings (loss) are the investor’s proportionate
share of the investee’s earnings (loss).
b. $20,100,000
If a firm consolidate subsidiaries not wholly owned, the
total revenues and expens of the subsidiaries are included
with tho of the parent. However, to determine the income
that would accrue to the parent, it is necessary to deduct
the portion of income that would belong to the minority
shares.
2. a. Net Sales
更多铃声$3,122,433,000 (2001)
$2,761,983,000 (2000)
$1,639,839,000 (1999)
b. Loss from Operations
$412,257,000 (2001)
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$863,880,000 (2000)
灵魂摆渡黄泉篇
$605,755,000 (1999)
c. Interest Expen
$139,232,000 (2001)
$130,921,000 (2000)
$ 84,566,000 (1999)
d. Material increa in sales, but this has not resulted in operating profits. In addition to the operating loss there has been material interest expens
e.
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QUESTIONS
4- 1. Extraordinary items are events or transactions that are distinguished by their unusual nature and infrequency of occurrence. They might include casualty loss or loss from expropriation or
prohibition. They must be shown parately, net of tax, in order that trend analysis can be made of income before extraordinary items.
写秋声的诗句
4- 2. d, f
4- 3. Examples include sales of curities, write-down of inventories, disposal of a product line not qualifying as a gment, gain or loss from a lawsuit, etc. They are shown parately becau of their materiality and the desire
to achieve full disclosure. They are not given net-of-tax treatment becau they are included in income before the income tax is deducted. Also, net-of-tax treatment would
infer that the items are extraordinary.
4- 4. Under the equity method, equity in earnings of nonconsolidated subsidiaries is a problem in profitability耶苏
analysis becau the income recognized is not a cash inflow.
The cash inflow is only the amount of the investor share of dividends declared and paid. Further, equity earnings do not
come directly from the operations of the business in question,
but rather from a subsidiary.
4- 5. It would appear that this is the disposal of a product line that is specifically parate from the dairy products line.
The disposal of the vitamin line should be identified as discontinued operations and be prented after income from continuing operations on the income statement.
4- 6. Unusual or infrequent items relate to operations. Examples
are write-downs of receivables and write-downs of inventory.
4- 7. In 2000, the cumulative effect of the new change would be prented on the income statement as a reduction, net of tax,
after any extraordinary items and just before net income.
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4- 8. The declaration of a cash dividend reduces retained earnings and increas current liabilities. The payment of a cash
dividend reduces current liabilities and cash.
4- 9. First, a stock split is usually for a larger number of shares. Secondly, a stock dividend reduces retained earnings and
increas paid-in capital. A stock split merely increas
the shares and reduces the par value, leaving the capital
练习瑜伽的好处stock account intact. Both require restatement of any per
share items.
4-10. If a firm consolidates subsidiaries that are not wholly owned, the total revenues and expens of the subsidiaries are
included with tho of the parent. To determine the income
that would accrue to the parent, however, it is necessary to
deduct the portion of income that would belong to the minority owners.
4-11. The statement of retained earnings summarizes the changes to retained earnings. Retained earnings reprents the
undistributed earnings of the corporation. The income
statement net income is added to retained earnings. A loss
is deducted from retained earnings.
4-12. 1. Appropriations as a result of a legal requirement.
2. Appropriations as a result of a contractual agreement.
3. Appropriations as a result of management discretion. Appropriations as a result of management discretion are not
likely a detriment to the payment of a dividend.
4-13. The balance sheet shows the account balances as of a
particular point in time. The income statement shows the
revenues and expens resulting from transactions for the
period of time.
4-14. a. Minority share of earnings is an income statement item
that reprents the minority owners' share of
consolidated earnings.
b. Equity in earnings is the proportionate share of the
earnings of the investor that relate to the investor's
investment.
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4-15. The two traditional formats for prenting the income statement are the multiple-step and single-step. The
祛斑产品3强multiple-step is preferable for analysis becau it provides intermediate profit figures that are uful in analysis.
2003 2002 2001
4-16. Earnings per share $1.40 $1.00 $.80
4-17. Accountants have not accepted the role of disclosing the firms capacity to make distributions to stockholders. Therefore,
the firms capacity to make distributions to stockholders
cannot be determined using published financial statements.
4-18. Management does not usually like to tie comprehensive income cloly with the income statement becau the items within accumulated other comprehensive income have the potential to
be volatile.
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PROBLEMS
PROBLEM 4-1
a. Decher Automotives
