Chat with us, powered by LiveChat During year 2021, Linston Inc. obtained an income after taxes from continuing activities of $1,293,000 During the month of N | WriteDen

During year 2021, Linston Inc. obtained an income after taxes from continuing activities of $1,293,000 During the month of N

  1. Exercise 1: (60 points)
    During year 2021, Linston Inc. obtained an income after taxes from continuing activities of $1,293,000
    During the month of November, an earthquake affected one of the company’s plant and implied a loss before taxes of $160,000. Also, the company decided to sell a segment of activity. The segment generated losses before taxes prior to its disposal for $36,000. The sale of the assets of the segment implied a loss before taxes of $20,000

Finally, the accountant of the company decided to change the depreciation method of the assets from straight line to double declining balance method. This implied an additional expense of $23,000

Tax rate is 25%.
1.- Prepare the income statement of the company and calculate the net income obtained in 2021 (30 points)

2.- Prepare the earning per share figure for each section of the income statement taking into account that the company had an average of 80,000 shares of common stocks outstanding throughout year 2021, and 10% preferred stocks outstanding for a total amount of $1,200,000. (30 points)

Exercise 2: (40 points)
The company shows the following balances for certain current assets and current liabilities accounts at January 1, 2021 and December 31, 2021.

page2image2670825632 page2image2670825984 page2image2670826272page2image2670842736

During the year, the company obtained a net income of $127,000
This net income includes the gain of $12,000 obtained in the sale of a plant asset for a total price of $123,000, and a depreciation expense of $123,000. Besides, during the year 2021 the company paid dividends for $50,000 to its stockholders and issued common stocks for a total amount of $40,000 During year 2021, the company repaid a note payable for $54,000.
On January 1st, 2021, the balance of the cash account was $347,000
1.- Prepare a statement of cash flow separating cash flows from operating, investing and financing activities (30 points)
2.- Calculate the balance of the cash account at December 31. (10 points)

HOW OUR WEBSITE WORKS

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of 
HIGH QUALITY & PLAGIARISM FREE.

Step 1

To make an Order you only need to click ORDER NOW and we will direct you to our Order Page at WriteDen. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
 Deadline range from 6 hours to 30 days.

Step 2

Once done with writing your paper we will upload it to your account on our website and also forward a copy to your email.

Step 3
Upon receiving your paper, review it and if any changes are needed contact us immediately. We offer unlimited revisions at no extra cost.

Is it Safe to use our services?
We never resell papers on this site. Meaning after your purchase you will get an original copy of your assignment and you have all the rights to use the paper.

Discounts

Our price ranges from $8-$14 per page. If you are short of Budget, contact our Live Support for a Discount Code. All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

Please note we do not have prewritten answers. We need some time to prepare a perfect essay for you.