Answer:
Viel Company
(a) Income from operations:
Sales revenue $310,000
Cost of goods sold 140,000
Selling & admin. expenses 50,000
Income from operations $120,000
(b) Net income:
Sales revenue $310,000
Cost of goods sold -140,000
Selling & admin. expenses -50,000
Income from operations $120,000
Gain on sales of plant assets 30,000
Interest Expense -6,000
Loss on discontinued operations -12,000
Net Income $132,000
(c) Comprehensive Income
Sales revenue $310,000
Cost of goods sold -140,000
Selling & admin. expenses -50,000
Income from operations $120,000
Gain on sales of plant assets 30,000
Interest Expense -6,000
Loss on discontinued operations -12,000
Net Income $132,000
Unrealized Gain on Investments -10,000
Comprehensive Income $122,000
(d) Retained Earnings balance at December 31, 2020:
Comprehensive Income $122,000
less Dividends 5,000
Retained Earnings Balance $117,000
Explanation:
a) Income from operations is the income generated from running the primary business and excludes income from other sources. For example, gains or losses from asset disposal and discontinued operations, and interest expense.
b) Net Income is the income from operations, including other sources of income, after adding or deducting non-operating gains or losses and interests.
c) Comprehensive income equals net income and unrealized income, such as unrealized gains or losses, and other non-operating gains and losses.
