Badger, Inc

question 42

Essay

Badger, Inc. is planning a major stock issuance in early 2017. During 2016, the company reported net income from operations of $530,000 before taxes. The items below describe major events that occurred during 2016.
1. A $52,000 gain was recognized on the sale of a subsidiary
2. Inventory was written down by $21,000 due to obsolescence
3. Casualty loss of $320,000
4. A $31,000 gain was recognized due to the adoption of a new FASB statement
The company's tax rate is 30 percent.
A. Which items should not be reported as a component of income from continuing operations?
B. Suppose management decided to exclude all of the above items from income from continuing operations. What effect might this have on investor and creditor decisions?

Understand the importance of a marketing strategy for business success, especially for small businesses.

Recognize different sales forecasting methods and their applications.

Grasp the process involved in making purchasing decisions and the concept of buyer's remorse.

Understand the five steps of the marketing research process and their correct order.

---

Definitions:

Sedentary

Describes a lifestyle or type of behavior characterized by a high amount of sitting or lying down, with very minimal physical activity.

Pedal A Tricycle

The act of operating a three-wheeled vehicle using foot pedals to propel it forward.

Rough-And-Tumble

A form of play that involves physical activities such as running, tumbling, and play-fighting, often seen among children and believed to be important for social development.

Large Muscle Groups

The collections of larger muscles in the body that contribute to major movements and activities, such as those in the legs, abdomen, and chest.