Exercise 4-8 Presented below are selected ledger accounts of Marigold Corporatio

Question

Exercise 4-8 Presented below are selected ledger accounts of Marigold Corporation as of December 31, 2017 Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2017) Cash dividends paid (2017) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2016 Retained earnings, December 31, 2016 Effective tax rate 30% $59,900 107,100 80,000 557,200 265,500 24,700 24,900 43,800 39,300 90,150 Compute net income for 2017 Net income s LINK TO TEXT LINK TO TEXT Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 18,070 shares of common stock were outstanding during 2017. (Round earnings per share to 2 decimal places, e.g. 1.58.)

Explanation / Answer

Net income for 2017 is given below:

Partial Income Statement

Net sales $5,57,200 COGS $2,65,500 admin expenses $1,07,100 selling expenses $80,000 Depreciation not recorded $39,300 Income from continuing operations before income tax $65,300 Income tax $19,590 Income from continuing operations $45,710 Loss on Discontinued operations, net of tax $30,660 Net income $15,050

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