Problem:
Presented below is information related to Tiger Company
Retained earnings 12/31/06 650,000
Sales 1,600,000
Selling and admin expenses 240,000
hurricane loss (pre-tax) on plant (extraordinary item) 250,000
cash dividends declared on common stock 33,600
Cost of goods sold 1,000,000
Gain resulting from computation error on depreciation charge in 2005 (pre-tax) 520,000
Other revenue 60,000
other expenses 50,000
Instructions:
Complete the items below for the year 2007. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year.
gross profit
income from operations
income taxes
extraordinary items
net income