Reference no: EM1358457
Corporate Income Statement
Income statement information for Nguyen Corporation in 2011 is as follows:
a. Administrative expenses, $110,000
b. Cost of goods sold, $440,000
c. Extraordinary loss from a storm (net of taxes, $10,000), $20,000
d. Income taxes expense, continuing operations, $42,000
e. Net sales, $890,000
f. Selling expenses, $190,000
Required
1. Prepare Nguyen Corporation's income statement for 2011, including earnings per share, assuming a weighted average of 100,000 shares of common stock outstanding for 2011.
2. Which item in Nguyen Corporation's income statement affects the company's quality of earnings? Why does it have this effect?
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