Prepare a partial income statement beginning with income

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Reference no: EM13529493

(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.

Reference no: EM13529493

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