Counting Crows, Inc. provided the following information for the year 2013. Using the information below, prepare Counting Crows 2013 income statement, and answer the questions below. Counting Crows has a tax rate of 35% for 2013. All items are shown pre-tax. Shares outstanding during 2011 were 100,000.
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Retained earnings, January 1, 2013
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$600,000
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Administrative expenses
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240,000
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Selling expenses
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300,000
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Sales revenue
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1,900,000
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Cash dividends declared and paid (includes $25,000 of preferred dividends)
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80,000
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Cost of goods sold
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850,000
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Extraordinary gain
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95,000
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Rent revenue
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40,000
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Unrealized holding gain on available for sale securities
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17,000
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a. What is Counting Crows' comprehensive income for the year ended 2013? [Hint - as we discussed with IBM, this is a combination of the regular income statement and other comprehensive income statement. The best way to answer this question is to prepare a statement that combines the regular income statement with the other comprehensive statement of income.]
b. What is the ending balance of Retained Earnings? Show calculations.
c. Assume Counting Crows is considering closing a manufacturing plant during 2014. Under what circumstances would the company report the 2014 net income from this plant above the line in 2014?