From the following data for Norton Company for the year ended December 31, prepa

Question

From the following data for Norton Company for the year ended December 31, prepare a multiple-step income statement. Show earnings per share for the following: income from continuing operations, loss on discontinued operations (less applicable income tax), income before extraordinary item, extraordinary item (less applicable income tax), and net income. Common stock, $50 par $200,000 Cost of merchandise sold 342,000 Administrative expenses 48,250 Income tax (applicable to continuing operations) 142,000 Interest expense 3,750 Loss on discontinued operations, net of applicable tax of $2,700 5,400 Sales 865,000 Selling expenses 83,000 Uninsured flood loss, net of applicable income tax of $4,500 14,000

Explanation / Answer

Sales 865000 Cost of merchandise Sold 342000 Gross Profit 523000 Less: Selling Expenses 83000 Less: Admin Expenses 48250 Less: Interest 3750 Income before Extraordinary Items 388000 Loss on Discontinued Operations 5400 Loss on flood 14000 Income after extraordinary 368600 Less Income Tax -142000 Income after Taxes 226600

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