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Alternate Exercises and Problems 4–1
Chapter 4 The Income Statement, Comprehensive Income,
and the Statement of Cash Flows
EXERCISES
Exercise 4-1
Requirement 1
APEX COMPUTER CORPORATION
Income Statement
For the Year Ended December 31, 2016
Revenues and gains:
Sales .................................................................
$3,400,000
Expenses and losses:
Cost of goods sold ............................................
$2,250,000
Administrative expense .....................................
450,000
4–2 Intermediate Accounting, 8/e
Exercise 4-1 (concluded)
Requirement 2
APEX COMPUTER CORPORATION
Income Statement
For the Year Ended December 31, 2016
Sales revenue .......................................................
$3,400,000
Operating expenses:
Administrative expense .....................................
$450,000
Other income (expense):
Interest revenue .................................................
35,000
Gain on sale of investments ..............................
30,000
Alternate Exercises and Problems 4–3
Exercise 4-2
BILIBONG COMPANY
Income Statement
For the Year Ended December 31, 2016
Income from continuing operations ....................................
$ 500,000
Discontinued operations:
Loss from operations of discontinued component
* Loss on discontinued operations:
Gain on sale of assets $300,000
4–4 Intermediate Accounting, 8/e
Exercise 4-3
Requirement 1
OTTOBONI CORPORATION
Income Statement
For the Year Ended December 31, 2016
Income from continuing operations ...................................
$600,000
Discontinued operations:
* Loss on discontinued operations:
Loss from operations $ (270,000)
Alternate Exercises and Problems 4–5
Exercise 4-3 (concluded)
Requirement 2
OTTOBONI CORPORATION
Income Statement
For the Year Ended December 31, 2016
Income from continuing operations ....................................
$ 600,000
Discontinued operations:
4–6 Intermediate Accounting, 8/e
Exercise 4-4
THE RUFUS and CLEFT MINING COMPANY
Statement of Comprehensive Income
For the Year Ended December 31, 2016
Net income ..........................................................
$2,122,000
Other comprehensive income (loss):
Exercise 4-5
1. d Purchase of equipment in exchange for a note payable.
Alternate Exercises and Problems 4–7
Exercise 4-6
Requirement 1 Siegfried & Royce
Statement of Cash Flows
For the Year Ended December 31, 2016
($ in thousands)
Cash flows from operating activities:
Net income $1,410
Adjustments for noncash effects:
4–8 Intermediate Accounting, 8/e
Requirement 2 Siegfried & Royce
Statement of Cash Flows
For the Year Ended December 31, 2016
($ in thousands)
Cash flows from operating activities:
Collections from customers $12,230 (1)
(1) $12,500 less $270 increase in accounts receivable.
Alternate Exercises and Problems 4–9
PROBLEMS
Problem 4-1
AJAX COMPANY
Income Statement
For the Year Ended December 31, 2016
Sales revenue .....................................................
$6,200,000
Operating expenses:
Administrative and selling ..............................
$1,500,000
Other income (expense):
Interest revenue ...............................................
100,000
4–10 Intermediate Accounting, 8/e
Problem 4-2
Requirement 1
HUNTINGTON STEEL CORPORATION
Comparative Income Statements
For the Years Ended December 31
2016
2015
Income from continuing operations before
income taxes [1] ..........................................
$4,355,000
$3,475,000
[1] Income from continuing operations before income taxes:
2016 2015
Unadjusted $3,900,000 $3,800,000
[2] Income from discontinued operations:
2016 2015
Income (loss) from operations $(455,000) $ 325,000
Alternate Exercises and Problems 4–11
Problem 4-2 (concluded)
Requirement 2
The 2016 income from discontinued operations would include only the loss from
Requirement 3
The 2016 income from discontinued operations would include the loss from
