23. QA_Ori:
(PharmaCare; discontinued operations.) (amounts in millions of euros)
a. In Year 7, 51% [= €2,410/(€2,410 + €2,306)] of PharmaCare’s income came
b. In Year 7, less than 0.2% (= €84/€51,378) of PharmaCare’s total assets were
c. The large decline in PharmaCare’s assets held for discontinued operations is due
24. QA_Ori: (Oratel S.A.E.; discontinued operations.) (amounts in thousands of
Egyptian pounds)
The missing items appear in boldface type below:
25. QA_Ori: (Cementex Corporation; income statement formats.) (amounts in millions
of pesos)
The missing items appear in boldface type below:
For Ye
a
rs 8, 7, and
6
Year 8
Year 7 Year 6
Net Sales
………….……..…….…….……..
$ 8,769.0 $ 7,061.2
$
6,145.2
Cost of Products Sold
………….……..…
4,618.9 3,843.0
3,342.
1
Excise Taxes on Spirits and
Wine…..
Advertising, Selling and Admini
s-
trative Co
s
t
s
514.0
2,070.1
326.5
1,694.4
299.
7
1,433.
Amortization of I
n
ta
n
g
i
b
l
e
s
…………..
43.5 33.4
Restructuring
Charges
………….………
2
1
.2
—
9
.8
Operating Income
………….……..……...
$ 1,501.3 $ 1,163.9
$
1,024.6
Interest Expe
ns
e
………….……..…….….
332.4 158.9
Other Financial Expense (I
nc
ome)
….
(
4
0
.
2
)
7
8
.9
(
4
7
. 0
Net Financial Expense (Income)
…….
$ 29
2
.2 $ 23
7
.8 $ 4
0
.3
Profit Before
T
ax
es
………….……..…….
$ 1,209.1 $ 926.1
$ 994.
3
Less Income
Taxes………………………..
tions …………………………………..
31
1
.1
32
4
.5
26
1
.
tions, Net of
Tax
………….……..…….
—
3
9
.5
6
7
.8
Net
Pr
of
i
t
………….……..…….…….……..
Portion of Profit Owned by
Minority
$ 89
8
.0
$ 6
7
.9
$ 64
1
.1
$ 2
0
.0
$
80
1
.
0
holders
………….……..…….……...
……
$ 83
0
.1 $ 62
1
.1 $
78
3
.
26. QA_Ori: (GoodLuck Brands; income statement formats.) (amounts in millions of
US$)
GOODLUCK BRANDS Income Statements
Portion of Profit Owned by Share-
27. QA_Ori: (Broyo Corporation; correcting errors in income statement transactions.)
(amounts in millions of euros)
a. Broyo should not have recognized revenue on this transaction because it has yet to
b. Broyo should not have recorded the advance from customer as revenues.
28. QA_Ori: (Dragonfly Limited; correcting errors in income statement transactions.)
(amounts in Singapore dollars)
a. In Year 7, Dragonfly’s revenues are overstated by $1,000. These revenues
should have been recognized in Year 6.
29. QA_Edit: (SeaBreeze, Inc.; classification and interpretation of income statements.)
(amounts in millions of yuan)
a. The ¥10,000 in Gains on Sales of Assets should not have been included in Sales
Revenues because the gains do not reflect a transaction that the firm is regularly
b. Net Financial Income of ¥13,800 should have been reported below the gross profit
A summary of the effects of reclassifying the items on gross profit and net income is
provided below:
30. QA_Ori: (Dyreng Plc.; classification and interpretation of income statements.)
(amounts in thousands of euros)
a. Dyreng should not have recognized any revenues (nor any costs) of this project in
b. Year 11 Revenues are overstated by €700 and expenses are overstated by €660.
c. The sale of the office building was not a normal part of Dyreng’s operations. It
31. QA_Ori: (Calculation of tax rates.) (amounts in millions of US$)
For Ye
a
rs 8, 7, and
6
Year 8
Year 7 Year 6
Net Sales
………….……..…….…….……..
$ 8,769.0 $ 7,061.2
$
6,145.2
Cost of Products Sold
………….……..…
4,618.9 3,843.0
3,342.
1
Excise Taxes on Spirits and
Wine…..
Advertising, Selling and Admini
s-
trative Co
s
t
s
514.0
2,070.1
326.5
1,694.4
299.
7
1,433.
Amortization of I
n
ta
n
g
i
b
l
e
s
…………..
43.5 33.4
Restructuring
Charges
………….………
2
1
.2
—
9
.8
Operating Income
………….……..……...
$ 1,501.3 $ 1,163.9
$
1,024.6
Interest Expe
ns
e
………….……..…….….
332.4 158.9
Other Financial Expense (I
nc
ome)
….
(
4
0
.
2
)
7
8
.9
(
4
7
. 0
Net Financial Expense (Income)
…….
$ 29
2
.2 $ 23
7
.8 $ 4
0
.3
Profit Before
T
ax
es
………….……..…….
$ 1,209.1 $ 926.1
$ 994.
3
Less Income
Taxes………………………..
tions …………………………………..
31
1
.1
32
4
.5
26
1
.
tions, Net of
Tax
………….……..…….
—
3
9
.5
6
7
.8
Net
Pr
of
i
t
………….……..…….…….……..
Portion of Profit Owned by
Minority
$ 89
8
.0
$ 6
7
.9
$ 64
1
.1
$ 2
0
.0
$
80
1
.
0
holders
………….……..…….……...
……
$ 83
0
.1 $ 62
1
.1 $
78
3
.
26. QA_Ori: (GoodLuck Brands; income statement formats.) (amounts in millions of
US$)
GOODLUCK BRANDS Income Statements
Portion of Profit Owned by Share-
27. QA_Ori: (Broyo Corporation; correcting errors in income statement transactions.)
(amounts in millions of euros)
a. Broyo should not have recognized revenue on this transaction because it has yet to
b. Broyo should not have recorded the advance from customer as revenues.
28. QA_Ori: (Dragonfly Limited; correcting errors in income statement transactions.)
(amounts in Singapore dollars)
a. In Year 7, Dragonfly’s revenues are overstated by $1,000. These revenues
should have been recognized in Year 6.
29. QA_Edit: (SeaBreeze, Inc.; classification and interpretation of income statements.)
(amounts in millions of yuan)
a. The ¥10,000 in Gains on Sales of Assets should not have been included in Sales
Revenues because the gains do not reflect a transaction that the firm is regularly
b. Net Financial Income of ¥13,800 should have been reported below the gross profit
A summary of the effects of reclassifying the items on gross profit and net income is
provided below:
30. QA_Ori: (Dyreng Plc.; classification and interpretation of income statements.)
(amounts in thousands of euros)
a. Dyreng should not have recognized any revenues (nor any costs) of this project in
b. Year 11 Revenues are overstated by €700 and expenses are overstated by €660.
c. The sale of the office building was not a normal part of Dyreng’s operations. It
31. QA_Ori: (Calculation of tax rates.) (amounts in millions of US$)