EPS and Financial Statement Presentation
The income statement for the company is as follows:
|
Sales |
$1,000,000 |
|
Operating expenses |
600,000 |
|
Operating income |
$ 400,000 |
|
Interest expense |
80,000 |
|
Income before income taxes |
$ 320,000 |
|
Income tax expense (40%) |
128,000 |
|
Income from continuing operations |
$ 192,000 |
|
Extraordinary loss (net of taxes) |
(50,000) |
|
Discontinued operations (net of taxes) |
(35,000) |
|
Net income |
$ 107,000 |
The company had 100,000 common shares outstanding for the entire year. In addition, for the entire year, the company had stock options outstanding that allow employees to purchase 50,000 shares of common stock. The option exercise price is $10 per share, and the average stock price for the year was $14. Compute and list all earnings per share numbers that the company is required to report.