the income statement of rawl company for the year ended 250985

The income statement of Rawl Company for the year ended December 31, 2010, shows the following:

Net sales……………………………………………………… $ 360,000

Cost of sales ………………………………………………….. 190,000

Gross profit …………………………………………………… 170,000

Selling, general, and administrative expense …………………. 80,000

Income before unusual write-offs …………………………….. 90,000

Provision for unusual write-offs ………………………………. 50,000

Earnings from operations before income taxes ……………….. 40,000

Income taxes ………………………………………………….. 20,000

Net earnings from operations before extraordinary charge …… 20,000

Extraordinary charge, net of tax of $10,000 ………………….. (50,000)

Net earnings (loss) …………………………………………….. $ (30,000)

Required

Compute the net earnings remaining after removing unusual write-offs and the extraordinary charge. Remove these items net of tax. Estimate the tax rate for unusual write-offs based on the taxes on operating income.

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?