(Income Statement, EPS) Presented below are selected amounts from the records of McGraw Corporation as of December 31, 2012.
|
Cash
|
$ 50,000
|
|
Administrative expenses
|
100,000
|
|
Selling expenses
|
80,000
|
|
Net sales
|
540,000
|
|
Cost of goods sold
|
260,000
|
|
Cash dividends declared (2012)
|
20,000
|
|
Cash dividends paid (2012)
|
15,000
|
|
Discontinued operations (loss before income taxes)
|
40,000
|
|
Depreciation expense, not recorded in 2011
|
30,000
|
|
Retained earnings, December 31, 2011
|
90,000
|
|
Effective tax rate 30%
|
|
Instructions
(a) Compute net income for 2012.
(b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 20,000 shares of common stock were outstanding during 2012.