Vulcan Corporation ( a real company whose name has been disguised) is a leading worldwide manufacturer and distributor of uncoated and coated...

Vulcan Corporation ( a real company whose name has been disguised) is a leading worldwide manufacturer and distributor ofuncoated and coated rubberlike fiberboard products. Vulcan's products are market to various industries, including companiesin the following businesses: footwear, headwear, luggage, leather goods, belt backing, furniture, electronic integrated component packaging, and automotive supplies.Information developed using Vulcan Corporation's financial statements for the year ended October 31, 2008 appears below.Vulcan CorporationCash Flow from Operating Activities($ in thousandsYear Ended October 31,2008Cash received from customers$37,378 Cash paid to suppliers(26,884)Cash paid for general and administrative expenses(8,002)Cash paid for interest(810)Cash paid for income taxes(74)Net cash provided by operating activities$1,608 Selected Balance Sheet Information31-Oct($ in thousands)20082007Accounts receivable, net$14,120 $11,043 Inventories5,465 5,798 Property, plant and equipment, net10,707 11,523 Accounts payable7,756 6,375 Accrued general and administrative expenses2,559 1,871 Interest payable130 52 936 675 Additional information-Total comprehensive income for the year ended October 31, 2008 was $336,000.-Other comprehensive loss (net of applicable income taxes) consisted of unrealized loss oninvestments classified as available-for-sale securities of $286,000- Equipment purchased during the year totaled $854,000- The book value of equipment retired during the year totaled $348,000.2. Prepare Vulcan Corporation's combined statement of income (loss)and comprehensive income (loss) for the year ended October 31, 2008Requirement 2:In order to prepare Vulcan’s income statement at October 31, 2008, the following items must be determined: sales, cost of goods sold, depreciation expense, general & administrative expense, interest expense and tax expense. These items can readily be determined from the information provided (see below—Calculation of revenues and expenses).Vulcan CorporationStatement of Income and Comprehensive IncomeYear Ended ($ in thousands) 31-Oct-08 Net sales (Schedule 1)$0 Cost of goods sold (Schedule 2)0 Gross profit 0 General and administrative expense (Schedule 3)0 Depreciation expense (Schedule 4)0 Operating income 0 Interest expense (Schedule 5)$0 Income before income taxes 0 Income tax expense $0 Net income 0 Other comprehensive loss Unrealized loss on investments classified as available-for-sale 0 Comprehensive income $0 Calculation of income statement revenues and expenses:Note all amounts are in thousands Sales Cash collected from customers $0 Plus increase in accounts receivable 0 Net sales (1)$0 Cost of goods sold Cash paid to suppliers $0 Plus decrease in inventories 0Plus increase in accounts payable 0 Cost of goods sold (2)$0 General and administrative expense Cash paid for general and administrative expense $0 Plus increase in accrued general and administrative expense 0 General and administrative expense (3)$0 Depreciation expense Plant, property & equipment at October 31, 2008$0 Plant, property & equipment (PP&E) at October 31, 20070Decrease in PP&E 0 Decrease in PP&E comprised of Equipment purchases 0Equipment retirements at net book value 0Depreciation expense (plug number) (4)0Decrease in PP&E $0 Interest expense Cash paid for interest expense $0 Plus increase in interest payable 0 Interest expense (5)$0 Income tax expense Cash paid for income taxes $0 Plus increase in deferred taxes 0 Income tax expense (6)$0

Requirement 1:Vulcan’s net income can be determined by adding the unrealized loss on investments to totalcomprehensive income reported for the year ended October 31, 2008.Solution: Computation...