Presented below is information related to Buffalo Company at

Presented below is information related to Buffalo Company at December 31, 2017, the end of its first year of operations.

Compute the following:

Sales revenue		$308,620
Cost of goods sold		146,950
Selling and administrative expenses		49,300
Gain on sale of plant assets		29,000
Unrealized gain on available-for-sale investments		9,620
Interest expense		5,960
Loss on discontinued operations		11,960
Dividends declared and paid		4,550

Solution

Sales revenue 308620 Cost of goods sold 1,46,950 Gross profit. 1,61,670 Selling administrative expenses. 49,300 Income from operations 1,12,370 Other revenues and gains Gain on sale of plant assets. 29,000 Profit before Other expenses and losses 1,41,370 Other expenses and losses. Interest expense 5,960 Income from continuing operations 23,040 Loss on discontinued operations. -11,960 Net Income 11,080 Unrealized gain on available-for-sale investments. 9,620 Comprehensive income. 20,700 Income from operations 1,12,370 Net income 11,080 Comprehensive income 20,700 Retained earnings balance at December 31, 2017 11,080