The vertical analysis of the income statement of settler, inc. is as shown below: (in millions) 2019 percent of total 2018 percent of total net sales $6,355 100.0% $4,920 100.0% cost of goods sold 3,370 53.0 2,200 44.7 gross profit 2,985 47.0 2,720 55.3 operating expenses: selling expenses 675 10.6 580 11.8 administrative expenses 410 6.5 425 8.6 total operating expenses 1,085 17.1 1,005 20.4 operating income 1,900 29.9 1,715 34.9 other income and (expenses): interest expense (400) (6.3) (695) (14.1) total other income and (expenses) (400) (6.3) (695) (14.1) income before income taxes 1,500 23.6 1,020 20.7 income tax expense 230 3.6 210 4.3 net income $1,270 20.0% $810 16.5% the 20% shown for net income in 2019 signifies that net income

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.

At the end of the fiscal year, apha airlines has an outstanding non-cancellable purchase commitment for the purchase of 1 million gallons of jet fuel at a price of $4.10 per gallon for delivery during the coming summer. the company prices its inventory at the lower of cost or market. if the market price for jet fuel at the end of the year is $4.50, how would this situation be reflected in the annual financial statements?

Donna and gary are involved in an automobile accident. gary initiates a lawsuit against donna by filing a complaint. if donna files a motion to dismiss, she is asserting that