Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 1.14EX
Net income and dividends
The income statement for the month of February indicates a net income of $17,500. During the same period, $25,500 in cash dividends were paid.
Would it be correct to say that the business incurred a net loss of $8,000 during the month? Discuss.
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Balance Sheet
December 31 of current year
Liabilities and Equity
Assets
Cash
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Accounts receivable, net
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Prepaid expenses
Plant assets, net
$ 16,000 Accounts payable
8,200 Accrued wages payable
30,600 Income taxes payable
40,150 Long-term note payable, secured by mortgage on plant assets
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Income Statement
For Current Year Ended December 31
$ 454,600
297,150
157,450
99,100
4,300
54,050
21,774
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Chapter 1 Solutions
Financial & Managerial Accounting
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