Question

For 2017, Josie would report comprehensive income of:

Sales revenue, $1,000,000, less Cost of goods sold, $700,000, less Operating expenses, $110,000, plus Unrealized holding gain on available-for-sale securities, $40,000, plus Cash dividends received on the securities, $4,000, equals :

Answer 1

Josie's comprehensive income for 2017 is calculated by taking sales revenue and subtracting the cost of goods sold and operating expenses, then adding unrealized holding gains on securities and dividend income, resulting in a comprehensive income of $234,000.

Step-by-step explanation:

To calculate Josie's comprehensive income for 2017, we need to consider sales revenue, cost of goods sold, operating expenses, and other comprehensive income items such as unrealized holding gains on securities and dividend income. The formula to calculate comprehensive income is as follows:

• Sales Revenue
• Minus: Cost of Goods Sold (COGS)
• Minus: Operating Expenses
• Plus: Unrealized Holding Gains on Available-for-Sale Securities
• Plus: Cash Dividends Received on the Securities

Using the provided information:

• Sales Revenue: $1,000,000
• Minus: COGS: $700,000
• Minus: Operating Expenses: $110,000
• Plus: Unrealized Holding Gain: $40,000
• Plus: Dividend Income: $4,000

So, Josie's comprehensive income would be calculated as follows:

$1,000,000 (Sales Revenue)

- $700,000 (COGS)

- $110,000 (Operating Expenses)

+ $40,000 (Unrealized Holding Gains)

+ $4,000 (Dividends)

= $234,000 (Comprehensive Income)

Therefore, Josie would report a comprehensive income of $234,000 for the year 2017.