Rhanda Merchandising Inc.
Income Statement
Total revenue $2,980,000
-Cost of goods sold ($1,520,828)
Gross profit $1,459,172
-Depreciation expense ($250,000)
Operating profit $1,209,172
Gain on condemnation of company property $266,000
-Loss of assets from meteor strike ($656,000)
Income from continuing operations before taxes $819,172
-Income taxes ($207,000)
Income from continuing operations after taxes $612,172
Gain from discontinued operations $755,000
-Loss from discontinued operations ($475,000)
Net income $892,172
d. intergovernmental organizations (IGOs). Multinational forces engage solely with international governmental organizations since they cannot interact with for-profit relief or local media agencies that require unified action.
Response:
Clarification:
When the ABC company submitted its Articles of Incorporation to the State of California, they intended to operate as ABC Inc., which implies corporation status with limited liability.
However, if a lawsuit is initiated by XYZ Inc. for breach of contract, and considering that XYZ has filed this case against ABC, the company will shift to being recognized as a partnership subject to unlimited liability. This change occurs because ABC has received notification from the State of California indicating that their Articles of Incorporation were not accepted due to the omission of their Registered Agent on the application forms.
