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Ratios and Income Statement

Please help explain in detail the attached problems.
For its fiscal year ending October 31, 2008, Molini Corporation reports the following partial data.
Income before income taxes $540,000
Income tax expense (30% $390,000) 117,000
Income before extraordinary items 423,000
Extraordinary loss from flood 150,000
Net income $273,000
The flood loss is considered an extraordinary item. The income tax rate is 30% on all items.
Instructions
Prepare a correct income statement, beginning with income before income taxes.
MOLINI CORPORATION
Partial Income Statement
For the Year Ended October 31, 2008
Income before income taxes
$ 540000

Income tax expense

Income before extraordinary item

Extraordinary loss from flood

Net income $ 273000

The income statement for Christensen, Inc., appears below.
CHRISTENSEN, INC.
Income Statement
For the Year Ended December 31, 2008
Sales $400,000
Cost of goods sold 230,000
Gross profit 170,000
Expenses (including $16,000 interest and $24,000 income taxes) 105,000
Net income $65,000
Additional information:
1. The weighted average common shares outstanding in 2008 were 30,000 shares.
2. The market price of Christensen, Inc. stock was $13 in 2008.
3. Cash dividends of $26,000 were paid, $5,000 of which were to preferred stockholders.
Instructions
Compute the following ratios for 2008.
(a) Earnings per share. (Round to 2 decimal places.)
(b) Price-earnings. (Round to 1 decimal place.)
(c) Payout.
(d) Times interest earned. (Round to 1 decimal place.)
(a) Earnings per share $

(b) Price-earnings times

(c) Payout %

(d) Times interest earned times

Rees Corporation experienced a fire on December 31, 2009, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.
December 31, 2009 December 31, 2008
Cash $ 30,000 $ 10,000
Receivables (net) 72,500 126,000
Inventory 200,000 180,000
Accounts payable 50,000 90,000
Notes payable 30,000 60,000
Common stock, $100 par 400,000 400,000
Retained earnings 113,500 101,000
Additional information:
1. The inventory turnover is 3.5 times.
2. The return on common stockholders' equity is 24%. The company had no additional paid-in capital.
3. The receivables turnover is 8.8 times.
4. The return on assets is 20%.
5. Total assets at December 31, 2008, were $605,000.
Instructions
Compute the following for Rees Corporation. (a) Cost of goods sold for 2009. (b) Net sales (credit) for 2009. (c) Net income for 2009. (d) Total assets at December 31, 2009.
(a) Cost of goods sold $

(b) Net sales $

(c) Net income $

(d) Total assets $

Incorrect.

Yadier Corporation has income from continuing operations of $290,000 for the year ended December 31, 2008. It also has the following items (before considering income taxes).
1. An extraordinary loss of $80,000.
2. A gain of $30,000 on the discontinuance of a division.
3. A correction of an error in last year's financial statements that resulted in a $20,000 understatement of 2007 net income.
Assume all items are subject to income taxes at a 30% tax rate.
Instructions
Prepare an income statement, beginning with income from continuing operations.
YADIER CORPORATION
Partial Income Statement
For the Year Ended December 31, 2008

$

Discontinued operations
Gain on discontinued division

Income before extraordinary item

Extraordinary item
Extraordinary loss

Net income $

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For its fiscal year ending October 31, 2008, Molini Corporation reports the following partial data.
Income before income taxes $540,000
Income tax expense (30% $390,000) 117,000
Income before extraordinary items 423,000
Extraordinary loss from flood 150,000
Net income $273,000
The flood loss is considered an extraordinary item. The income tax rate is 30% on all items.
Instructions
Prepare a correct income statement, beginning with income before income taxes.
MOLINI CORPORATION
Partial Income Statement
For the Year Ended October 31, 2008
Income before income taxes
$ 540000

Income tax expense

Income before extraordinary item

Extraordinary loss from flood

Net income $ 273000

Income before income taxes 540,000
Income tax expense (30%) 162,000
Income before extraordinary item 378,000
Extraordinary loss from flood (net of tax of 45,000) 105,000
Net Income 273,000
The income tax expense is calculated on the income before taxes and the extraordinary item is presented net of related tax (150,000X30%=45,000)

The income statement for Christensen, Inc., appears below.
CHRISTENSEN, INC.
Income Statement
For the Year Ended December 31, 2008
Sales $400,000
Cost of goods sold 230,000
Gross profit 170,000
Expenses ...

Solution Summary

The solution explains how to make a formatted multi step income statement and also has calculation for some ratios

$2.19