During 2012, Vitos Corporation engaged in two complex transactions to improve the business—selling off a division and retiring bonds. The company has always issued a simple, single-step income statement, and the accountant has accordingly prepared the December 31 year-end income statements for 2011 and 2012, as shown below.
Robert Vitos, the president of Vitos Corporation, is pleased to see that both net income and earnings per share increased by almost 33 per cent from 2011 to 2012, and he intends to announce to the company’s stockholders that the plan to improve the business has been successful.
1. Recast the 2012 and 2011 income statements in proper multistep form, including allocating income taxes to appropriate items (assume a 30 per cent income tax rate) and showing earnings per share figures (400,000 shares outstanding).
2. What is your assessment of Vitos Corporation’s plan and business operations in 2012?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more