Retained earnings balance, January 1, 2017 $988,590 Sales Revenue 26,102,600 Cos

Question

Retained earnings balance, January 1, 2017 $988,590

Sales Revenue 26,102,600

Cost of goods sold 16,294,600

Interest revenue 79,900

Selling and administrative expenses 4,770,300

Write-off of goodwill 822,300

Income taxes for 2017 1,270,500

Gain on the sale of investments 120,100

Loss due to flood damage 392,700

Loss on the disposition of the wholesale division (net of tax) 448,400

Loss on operations of the wholesale division (net of tax) 86,500

Dividends declared on common stock 239,900

Dividends declared on preferred stock 72,850

Shamrock Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Shamrock sold the wholesale operations to Rogers Company. During 2017, there were 529,100 shares of common stock outstanding all year.

Please post a multi-step income statement

Thank you in advance.

Cost of Goods Sold 16294600 Gross Profit/(Loss) 9808000 Selling and Administrative Expenses 4770300 5037700 Other Revenues and Gains Interest Revenue 79900 Gain on the Sale of Investments 120100 5237700 Other Expenses and Losses Write-off of Goodwill (822300) Loss from Flood Damage (392700) (1215000)

Explanation / Answer

a)In place of 5237700 (red marked ) ,there will be sum of interest revenue 79900+gain on sale of investment 120100 =200000

**EPS -Income from continuing operations =[income from continuing operations -preferred dividend ]/number of common shares

=[2752200-72850]/529100

= $5.06 per share

Earning per share Income from continuing operations 5.06 Discontinued operations loss on disposal [-448400/529100] (.85) loss on operations [-86500/529100] (.16) (1.01) Net income /(loss) 4.05

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