Select Page

Amount of gain (loss) on sale or disposal of property, plant and equipment assets, excluding oil and gas property and timber property. State Unemployment Taxes Payable, $2,240 (liability for January and February together). During March and April, the company had the following payroll transactions. Various schedules providing all the necessary information related to the business transactions in an organized manner and specified format are known as financial statement. These statements are used for various purpose by the related parties. Amount of income (expense) related to nonoperating activities, classified as other.

What does a comparative statement explain?

A comparative statement is a document used to compare a particular financial statement with prior period statements. Previous financials are presented alongside the latest figures in side-by-side columns, enabling investors to identify trends, track a company's progress and compare it with industry rivals.

Hence, if the sales are decreased by 40%, the miller company’s net income is decreased by 57%, and the weaver company’s net income is decreased by 114%. Hence, if the sales are decreased by 20%, the miller company’s net income is decreased by 29%, and the weaver company’s net income is decreased by 57%. Hence, if the sales are decreased by 10%, the miller company’s net income is decreased by 14%, and the weaver company’s net income is decreased by 29%. The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

How to Calculate Net Income on Condensed Income Statements

The effects of income taxes might be stated in a separate line item. Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss). Amount before tax of foreign currency transaction realized and unrealized gain (loss) recognized in the income statement. EBITDA defined as operating income plus depreciation, impairment expenses net of purchase gains and exceptional charges/ (income).

  • The aggregate amount of income or expense from ancillary business-related activities (that is to say, excluding major activities considered part of the normal operations of the business).
  • The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.
  • Various schedules providing all the necessary information related to the business transactions in an organized manner and specified format are known as financial statement.
  • ___ Paid the amount due on the note to Fox-Pro at maturity.
  • ___ Paid the amount due on the note to City Bank at maturity.

It is easier for your small business to calculate net income on a condensed income statement than on one with more detail because there are fewer numbers to consider. A condensed income statement is typically issued to external parties, who are less interested in the precise sources of a company’s revenues or what expenses it incurs, and more concerned with its overall performance. Thus, bankers and investors may be interested in receiving a condensed income statement, while a company manager would likely want to see more detail. The condensed financial statements must adhere to Generally Accepted Accounting Principles (GAAP) and may at times be provided to interested parties in lieu of full financial statements.

Financial Performance

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Condensed financial statements are a summary form of a company’s income statement, balance sheet, and cash flow statement, usually combined into a single document. These shortened statements are created to provide a quick overview of the company’s financial status with limited detail, and often for internal use only. Prepare the August 31 journal entry to record the employer’s payroll taxes including the contribution to the benefits plan. Apr. 15 Issued check to Swift Bank in payment of the March FICA and employee income taxes.

The auditing team conducting an audit of the company will usually view condensed financial statements along with full financial statements for a full picture of the company’s financial standing. Hence, if the sales are increased by 80%, the miller company’s net income is increased by 114%, and the weaver company’s net income is increased by 228%. Hence, if the sales are increased by 50%, the miller company’s net income is increased by 71%, and the weaver company’s net income is increased by 142%. Hence, if the sales are increased by 30%, the miller company’s net income is increased by 42%, and the weaver company’s net income is increased by 85%.

Business Development

15 Issued check to the State Tax Commission for the January, February, and March state unemployment taxes. Filed the check and the first-quarter tax return with the Commission. Learn how to prepare an income statement and see what’s included in a basic income statement.

condensed income statement

Determine the interest expense to be recorded in the adjusting entry at the end of 2016. Dec. 6 Borrowed $8,000 cash from City Bank by signing a 45-day, 9% interest-bearing note with a face value of $8,000. July 15 Borrowed $12,000 cash from Spring Bank by signing a 120-day, 10% interest-bearing note with a face value of $12,000. Amount before accretion (amortization) of purchase discount (premium) of interest income on nonoperating securities. Difference between the fair value of payments made and the carrying amount of debt which is extinguished prior to maturity.

Differences Between Top-Line Revenue and Operating Revenue

Diluted earnings per common share include assumed shares from employee share-based payments and convertible debt (if dilutive) in the weighted average number of common shares outstanding during the periods presented. Prepare the August 31 journal entry to pay all liabilities (except for the net payroll in part c) for this biweekly period. Prepare the August 31 journal entry to record the accrued biweekly payroll and related liabilities for deductions. A condensed income statement is one that summarizes much of the income statement detail into a few captions and amounts. When examining a condensed set of financials, you should be extra critical when looking at each line item. The lack of detail may make the analysis simpler, but that same lack of detail can mask large fundamental problems within the firm.

What are the types of comparative income statement?

  • Horizontal Analysis. Horizontal analysis is one of the popular techniques of comparative income statements demonstrating the financial change in both absolute and percentage terms.
  • Vertical Analysis.

It includes key elements of a regular income statement, such as revenues, expenses, and net income, but with fewer line items and less detail. A condensed income statement can be useful for various stakeholders, including investors, creditors, and management, as it provides a high-level view of a company’s financial performance. However, it’s important to note that a condensed income statement may not provide sufficient detail for a comprehensive financial analysis. In such cases, a full income statement with detailed line items and accompanying financial statements would be necessary for a thorough evaluation. An income statement lists a company’s revenues, expenses and net income, or profit. A condensed income statement reports the same overall information, but combines individual revenue and expense items into several key totals.

Recommended explanations on Business-studies Textbooks

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Total costs of sales and operating expenses for the period. Prepare the August 31 journal entry to record the employer’s cash payment of the net payroll of part b. 30 Issued check payable to Swift Bank in payment of the employer’s FUTA taxes for the first quarter of the year. If all the items of a normal income statement get minimized into just a few line items then it is known as a condensed income statement. Let’s consider a hypothetical example of a condensed income statement for ABC Company for the quarter ended March 31, 2023.

  • In such cases, a full income statement with detailed line items and accompanying financial statements would be necessary for a thorough evaluation.
  • Disclosures and footnotes that would be found in full financial statements are eliminated.
  • Hence, if the sales are increased by 50%, the miller company’s net income is increased by 71%, and the weaver company’s net income is increased by 142%.
  • Hence, if the sales are decreased by 40%, the miller company’s net income is decreased by 57%, and the weaver company’s net income is decreased by 114%.
  • A condensed income statement can be useful for various stakeholders, including investors, creditors, and management, as it provides a high-level view of a company’s financial performance.
  • Determine the maturity date for each of the three notes described.

___ Paid the amount due on the note to Fox-Pro at maturity. Prepare journal https://personal-accounting.org/what-is-a-condensed-income-statement/ entries to record the transactions and events for both March and April.