The Following Income Statement Items Appeared on the Adjusted Trial

question 11

Essay

The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2013 ($ in 000s): sales revenue, $22,300; cost of goods sold, $14,500; selling expenses, $2,300; general and administrative expenses, $1,200; dividend revenue from investments, $200; interest expense, $300. Income taxes have not yet been accrued. The company's income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2013 ($ in 000s). All transactions are material in amount.
1. Investments were sold during the year at a loss of $300. Foxworthy also had unrealized losses of $200 for the year on investments.
2. One of the company's factories was closed during the year. Restructuring costs incurred were $2,000.
3. One of Foxworthy's manufacturing facilities located in a foreign country was expropriated. A loss of $800 was recognized. The event is considered to be unusual and infrequent.
4. During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $800 in 2013 prior to the sale, and its assets were sold at a loss of $1,800.
5. Foreign currency translation gains for the year totaled $600.
Required:
Prepare Foxworthy's single, continuous statement of comprehensive income for 2013, including basic earnings per share disclosures. Two million shares of common stock were outstanding throughout the year.

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Definitions:

Physical Disabilities

Conditions that limit an individual's physical functioning, mobility, dexterity, or stamina, often requiring adaptation of living or working environments.

Pardoned Conviction

A legal decision where a convict is officially forgiven for their crime and relieved from the consequences of their legal conviction.

Criminal Conviction

A formal declaration that someone is guilty of a criminal offense, typically following a trial or plead of guilt.

Source of Income

The origin or means through which an individual, company, or government receives money, typically through work, investments, or sales.