《会计学》课程教学资源（PPT课件讲稿）Chapter 12 Income and Changes in Retained Earnings

Slide 12-1 12 Chapter 1 Income and Changes in Retained Earnings Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999

?The McGraw-Hill Companies, Inc., 1999 Slide 12-1 Irwin/McGraw-Hill Chapter 12 Income and Changes in Retained Earnings

Slide 12-2 Reporting the results of Operations Information about net income is used by investors, creditors, and other financial statement users Normal, recurring Unusual, nonrecurring revenue and expense events that affect transactions net income Income 1. The results of 2. The impact of 3. The effects of from discontinued extraordinary changes in continuing operations items accounting operations. principles Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc, 1999

?The McGraw-Hill Companies, Inc., 1999 Slide 12-2 Irwin/McGraw-Hill Reporting the Results of Operations Income from continuing operations. Normal, recurring revenue and expense transactions. 1. The results of discontinued operations. 2. The impact of extraordinary items. 3. The effects of changes in accounting principles. Unusual, nonrecurring events that affect net income. Information about net income is used by investors, creditors, and other financial statement users

Slide 12-3 Ross Corporation Income Statement For the year ended december 31. 2001 Net sales $8,000,000 Cost of goods sold 4,500,000 Gross margin $3,500,000 Operating expenses Selling expenses $1,500,000 General& Admin. exp. 920.000 Loss on settlement of lawsuit 80.000 Income taxes 300,0002800,000 Income from Continuing Operations $700,000 Discontinued operations 245,000 Extraordinary Items (70,000) Cumulative effect of a change in accounting principle 140,000 Net income $1,015,000 Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc, 1999

?The McGraw-Hill Companies, Inc., 1999 Slide 12-3 Irwin/McGraw-Hill Ross Corporation Income Statement For the Year Ended December 31, 2001 Net Sales $ 8,000,000 Cost of goods sold 4,500,000 Gross margin $ 3,500,000 Operating expenses: Selling expenses $ 1,500,000 General & Admin. exp. 920,000 Loss on settlement of lawsuit 80,000 Income taxes 300,000 2,800,000 Income from Continuing Operations $ 700,000 Discontinued Operations 245,000 Extraordinary Items (70,000) Cumulative effect of a change in accounting principle 140,000 Net income $ 1,015,000

Slide 12-4 Ross Corporation Income Statement For the year ended december 31. 2001 Net sales $8,000,000 Cost of goods sold 4,500,000 Gross margin $3,500,000 Operating expenses Selling expenses $1,500000 General& Admin. exp. This tax expense Loss on settlement of lawsuit Income taxes does not include Income from Continuing Operations effects of unusual, Discontinued operations nonrecurring items. o Extraordinary Items Cumulative effect of a change in accounting principle 140,000 Net income $1,015,000 Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc, 1999

?The McGraw-Hill Companies, Inc., 1999 Slide 12-4 Irwin/McGraw-Hill Ross Corporation Income Statement For the Year Ended December 31, 2001 Net Sales $ 8,000,000 Cost of goods sold 4,500,000 Gross margin $ 3,500,000 Operating expenses: Selling expenses $ 1,500,000 General & Admin. exp. 920,000 Loss on settlement of lawsuit 80,000 Income taxes 300,000 2,800,000 Income from Continuing Operations $ 700,000 Discontinued Operations 245,000 Extraordinary Items (70,000) Cumulative effect of a change in accounting principle 140,000 Net income $ 1,015,000 This tax expense does not include effects of unusual, nonrecurring items

Slide 12-5 Ross Corporation Income Statement For the year ended december 31. 2001 Net sales $8,000,000 Cost of goods sold 4,500,000 Gross margin $3,500,000 Operating expenses Selling expenses $1,500,000 General& Admin. exp. 920.000 Loss on settlement of lawsuit 80.000 Income taxes 3000n 2800.000 Income from Continuing Operations Discontinued Operations These unusual Extraordinary Items nonrecurring items are Cumulative effect of a change each reported net of in accounting principle taxes Net income Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc, 1999

?The McGraw-Hill Companies, Inc., 1999 Slide 12-5 Irwin/McGraw-Hill Ross Corporation Income Statement For the Year Ended December 31, 2001 Net Sales $ 8,000,000 Cost of goods sold 4,500,000 Gross margin $ 3,500,000 Operating expenses: Selling expenses $ 1,500,000 General & Admin. exp. 920,000 Loss on settlement of lawsuit 80,000 Income taxes 300,000 2,800,000 Income from Continuing Operations $ 700,000 Discontinued Operations 245,000 Extraordinary Items (70,000) Cumulative effect of a change in accounting principle 140,000 Net income $ 1,015,000 These unusual, nonrecurring items are each reported net of taxes

Slide 12-6 Discontinued Operations When management enters into a formal plan to sell or discontinue a segment of the business Income/Loss from operating the segment prior to disposal Discontinued Operations Income/Loss on disposal of the segment Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999

?The McGraw-Hill Companies, Inc., 1999 Slide 12-6 Irwin/McGraw-Hill Discontinued Operations Income/Loss from operating the segment prior to disposal. Discontinued Operations Income/Loss on disposal of the segment. When management enters into a formal plan to sell or discontinue a segment of the business

Slide Discontinued Operations When management enters into a formal plan to sell or discontinue a segment of the business A segment must be a separate line of business activity or an operation that services a distinct category of customers Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999

?The McGraw-Hill Companies, Inc., 1999 Slide 12-7 Irwin/McGraw-Hill Discontinued Operations When management enters into a formal plan to sell or discontinue a segment of the business. A segment must be a separate line of business activity or an operation that services a distinct category of customers

Slide 12-8 Discontinued operations Example During 2000, Apex Co sold an unprofitable segment of the company. The segment had a net loss from operations during the period of $150,000 and its assets sold at a loss of $100,000. Apex reported income from continuing operations of $350,000. All items are taxed at 30% How will this appear on the income statement? Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999

?The McGraw-Hill Companies, Inc., 1999 Slide 12-8 Irwin/McGraw-Hill During 2000, Apex Co. sold an unprofitable segment of the company. The segment had a net loss from operations during the period of $150,000 and its assets sold at a loss of $100,000. Apex reported income from continuing operations of $350,000. All items are taxed at 30%. How will this appear on the income statement? Discontinued Operations Example

Slide 12-9 Discontinued Operations Example Loss on segment operations $(150,000) Less: Tax benefits($150,000? 30%) 45,000 Net loss $(105000 Loss on disposal of assets $(100,000) Less: Tax benefits($100,000? 30%) 30.000 Net loss $(70,000 Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999

?The McGraw-Hill Companies, Inc., 1999 Slide 12-9 Irwin/McGraw-Hill Discontinued Operations Example Loss on segment operations $ (150,000) Less: Tax benefits ($150,000 ? 30%) 45,000 Net loss $ (105,000) Loss on disposal of assets $ (100,000) Less: Tax benefits ($100,000 ? 30%) 30,000 Net loss $ (70,000)

Slide 12-10 Discontinued Operations Example Income Statement Presentation Income from continuing operations 350,000 Discontinued operations: Loss on operations(net of tax benefit of $45, 000) (105,000) Loss on disposal of assets( net of tax benefits of $30,000) (70,000) Earnings before extraordinary item $ 175,000 Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc, 1999

?The McGraw-Hill Companies, Inc., 1999 Slide 12-10 Irwin/McGraw-Hill Income from continuing operations $ 350,000 Discontinued operations: Loss on ope ra tions (ne t of tax benefit of $45,000) (105,000) Loss on disposa l of a sse ts (ne t of ta x be ne fits of $30,000) (70,000) Earnings before extraordinary item $ 175,000 Income Statement Presentation: Discontinued Operations Example