102. Chicago Company has two divisions, A and B. The operations and cash flows of these two divisions are clearly distinguishable. On July 1, 2014, the company decided to dispose of the assets and liabilities of Division B. It is probable that the disposal will be completed early next year. The revenues and expenses of Chicago Company for 2014 and for the preceding two years are as follows:
2014
2013
2012
Sales-Division A40,00036,80034,000
Sales-Division B30,00032,40036,000
Total non tax expenses-A28,00032,40030,000
Total non tax expenses-B31,80030,00030,800
During the latter part of 2014, Chicago disposed of a portion of Division B and recognized a pretax loss of $10,000 on the disposal. The income tax rate for Chicago Company is 40%.
Prepare the comparative income statements for Chicago Company for the years 2012, 2013, and 2014.
103. The changes in the account balances and the following additional information are taken from the accounts of the Crush Co.
Increase
Cash .................................................$142,500
Accounts Receivable ..................................(30,000)
Inventory ............................................202,500
Buildings and Equipment (net) ........................630,000
Accounts Payable .....................................(172,500)
Bonds Payable ........................................375,000
Capital Stock ........................................300,000
Additional Paid-In Capital ...........................45,000
Dividends for 2014 were $82,500. There were no transactions in 2014 affecting retained earnings other than the dividends and net income. Calculate the 2014 net income.