Reference no: EM13534328

Prepare an income statement.

The following balances appeared in the general ledger for Hacky Sak Corporation at fiscal year end September 30, 2008:

Selling and administrative expenses	$ 2s,000
Other revenues and gains	50,000
Operating expenses	75,000
Cost of goods sold	135,000
Net sales	375,000
Other expenses and losses	15,000

In addition, the following occurred throughout the year.

1. On April 10, a tornado destroyed one of the company's manufacturing plants resulting in an extraordinary loss of $55,000.

2. On July 31, the company discontinued one of its unprofitable segments. The loss from operations was $25,000. The assets of the segment were sold at a gain of $15,000.

Required

a. Assume Hacky Sak's income tax rate is 40Vo; prepare the income statement for the year ended September3 0, 2008.

b. Calculate the earnings per share the company would report on the income statement assuming Hacky Sak had a weighted average of 200,000 shares of common stock outstanding during the year and paid preferred dividends of $5,000.