Wind Surfer Inc. produces and distributes equipment for sailboats. On the basis of the following data for the current fiscal year ended June 30, 2008, prepare a multiple step income statement for Wind Surfer, including an analysis of earnings per share in the form illustrated in this chapter. There were 20,000 shares of $150 par common stock outstanding throughout the year.
|
Administrative expenses |
$ 104,000 |
|
Cost of merchandise sold |
467,500 |
|
Gain on condemnation of land (extraordinary item) |
58,000 |
|
Income tax applicable to gain on condemnation of land |
23,200 |
|
Income tax reduction applicable to loss from discontinued operations |
32,000 |
|
Income tax applicable to income from continuing operations |
93,200 |
|
Loss on discontinued operations |
80,000 |
|
Loss from fixed asset impairment |
120,000 |
|
Restructuring charge |
50,000 |
|
Sales |
1,100,000 |
|
Selling expenses |
125,500 |