Reference no: EM132648325

Presented below are selected ledger accounts of Crawford Corporation as of December 31, 20X1.

Cash $ 100,000

Administrative expenses 200,000

Selling expenses 100,000

Net sales 900,000

Cost of goods sold 300,000

Cash dividends declared (20X1) 50,000

Discontinued operations (loss before income taxes) 100,000

Effective tax rate = 30%

Instructions:

Question (a) Compute net income for 20X1. (Show calculations)

Question (b) Prepare partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 20X1.