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Question - For the year ended December 31, Southern Supply had net sales of $7,600,000, costs and other expenses (including income tax) of $6,200,000, and a gain from discontinued operations (net of income tax) of $420,000.
a. Make condensed income statement (including earnings per share), assuming that 910,000 shares of common stock were outstanding throughout the year.
b. Which earnings per share figure would you recommend be used to compute the price-earnings ratio for Southern Supply?
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