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94. Calstone, Inc., prepares a single, continuous statement of comprehensive income.

Question : 94. Calstone, Inc., prepares a single, continuous statement of comprehensive income. : 1412618

 

 

94.

Calstone, Inc., prepares a single, continuous statement of comprehensive income. The following situations occurred during the company's 2016 fiscal year:

1. Land that had been held as an investment was sold and a gain was recognized.
2. Losses from foreign currency translation were recognized.
3. Interest revenue was recognized.
4. A division was sold that qualifies as a separate component according to GAAP regarding discontinued operations.
5. Unrealized losses on investments.
6. Restructuring costs were incurred due to downsizing and reorganization of a manufacturing facility.

Required:

For each situation, identify the appropriate reporting treatment from the list below (consider each event to be material).

a. As a component of operating income.
b. As a nonoperating income item (other income or expense).
c. As a discontinued operation.
d. As an item of other comprehensive income. 
 
 

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95.

The following information is for Redwood Inc. for the year ended December 31, 2016. Redwood had a cash and cash equivalents balance of $5,200 on January 1, 2016.

 

Cash received from:

 

Customers

$ 1,900

Interest on investments

200

Sale of land

100

Sale of common stock

600

Issuance of debt securities

2,000

 

 

Cash paid for:

 

Interest on debt

$   300

Income tax

80

Debt principal reduction

1,500

Purchase of equipment

4,100

Purchase of inventory

1,000

Dividends on common stock

200

Operating expenses

500



Required:

Prepare a statement of cash flows for the year using the direct method for operating activities.  
 
 

 

 

 

 

 

Solution
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Accounting 1 Year Ago 203 Views
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