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Exam 4: The Income Statement, comprehensive Income, and the Statement of Cash Flows

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Question 51

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Required: Prepare a multiple-step income statement with earnings per share disclosure.

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Question 52

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Expenses in an income statement prepared under International Financial Reporting Standards:

A) Must be classified by function.
B) Must be classified by natural description.
C) Can be classified either by function or by natural description.
D) None of the other answers is correct.

E) None of the above
F) C) and D)

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Question 53

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On August 1,2016,Rocket Retailers adopted a plan to discontinue its catalog sales division,which qualifies as a separate component of the business according to GAAP regarding discontinued operations.The disposal of the division was expected to be concluded by June 30,2017.On January 31,2017,Rocket's fiscal year-end,the following information relative to the discontinued division was accumulated: In its income statement for the year ended January 31,2017,Rocket would report a before-tax loss on discontinued operations of:

List at least four operating activities that would be reported in the statement of cash flows for Walmart.Assume the use of the direct method.

Intraperiod tax allocation is the process of associating income tax effects with the income statement components that create those effects.

Use the following to answer questions The trial balance of Kroeger Inc.included the following accounts as of December 31,2016: Kroeger had 300,000 shares of stock outstanding throughout the year.Income tax expense has not yet been accrued.The effective tax rate is 40%. -Required: Prepare a 2016 single,continuous statement of comprehensive income for Kroeger Inc.Use a multiple-step income statement format.

Lucia Ltd.reported net income of $135,000 for the year ended December 31,2016.January 1 balances in accounts receivable and accounts payable were $29,000 and $26,000,respectively.Year-end balances in these accounts were $30,000 and $24,000,respectively.Assuming that all relevant information has been presented,Lucia's cash flows from operating activities would be:

In the 2016 income statement for Foxtrot Co. ,it would report:

In the 2016 income statement for Foxtrot Co. ,it would report income from discontinued operations of:

Material restructuring costs are reported as an element of income from continuing operations.

Operating cash outflows would include:

Intraperiod income tax presentation is primarily a matter of:

Freda's Florist reported the following before-tax income statement items for the year ended December 31,2016: All income statement items are subject to a 40% income tax rate.In its 2016 income statement,Freda's separately stated income tax expense and total income tax expense would be:

The direct and indirect methods of reporting the statement of cash flows present different information for investing and financing activities.

In a statement of cash flows prepared under International Financial Reporting Standards,each of the following items is typically classified as a financing cash flow except:

The Filzinger Corporation's December 31,2016 year-end trial balance contained the following income statement items: Required: Calculate the company's operating income for the year using a single-step income statement format.

Earnings per share disclosure is required only for income from continuing operations.

Suppose that the Footwear Division's assets had not been sold by December 31,2016,but were considered held for sale.Assume that the fair value of these assets at December 31 was $40 million.In the 2016 income statement for Foxtrot Co. ,it would report a loss from discontinued operations of:

Reconciliation between net income and comprehensive income would include:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.