The company had 25000shares of common stock outstanding

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Reference no: EM13481879

The Hot Aire Company reported the following items on its income statement for 2007.

a. Net operating revenues,$956,000

b. Cost of goods sold,$312,000

c. Selling andadministrative expenses, $245,000

d. Research anddevelopment expenses, $122,000

e. Net interest expense,$8,500

f. Provision for incometaxes, $85,920

g. Current year loss fromdiscontinued operations of $24,000, net of tax benefit of$7,680

h. Loss from sale ofdiscontinued operations of $89,000, net of tax benefit of$24,480

i. Preferred stockdividends, $48,000

The company had 25,000shares of common stock outstanding throughout the fiscalyear.

Compute each of the following:

A. Operating income

B. Income (loss) from continuing operations, before taxes

C. Income (loss) before discontinued operations

D. Net income(loss)

E. Net income (loss)available for common shareholders

F. Earnings per share fromcontinuing operations

G. Earnings per share fromdiscontinued operations

H. Earnings per share from net income(loss)

Reference no: EM13481879

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