During the current year, Sports +, Inc., operated two business segments: a chain

Question

During the current year, Sports +, Inc., operated two business segments: a chain of surf and dive shops and a small chain of tennis shops. The tennis shops were not profitable and were sold near year-end to another corporation. Sports + operations for the current year are summarized below. The first two captions, "Net sales" and "Costs and expenses," relate only to the company's continuing operations.


Net sales- $12,500,000
Costs and expenses (including applicable income tax)- $8,600,000
Operating loss from tennis shops (net of income tax)- $192,000
Loss on sale of tennis shops (net of income tax)- $348,000




The company had 182,000 shares of a single class of capital stock outstanding throughout the year.


a. Prepare a condensed income statement for the year. At the bottom of the statement, show any appropriate earnings per share figures

Explanation / Answer

Hi, If you like my answer rate me first...that way only I can earn points. Thanks Net sales= $12,500,000 Costs and expenses (including applicable income tax)= $8,600,000 Operating loss from tennis shops (net of income tax)= $192,000 Loss on sale of tennis shops (net of income tax)= $348,000 Net Income = $3360000 EPS = $3360000/182000 = $18.4615

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