The Hot Aire Company reported the following items on its income statement for 2004.a. Net operating revenues, $956,000b. Cost of goods sold, $312,000c. Selling and administrative expense, $245,000d. Research and development expenses, $122,000e. Net interest expense, $8,500f. Provision for income taxes, $85,920g. Current year loss from discontinued operations of $24,000, net of tax benefit of $7,680h. Loss from sale of discontinued operations of $89,000, net of tax benefit of $24,480i. Cumulative effect (gain) of change in accounting principle of $11,050, net of tax benefit of $3,536j. Preferred stock dividends, $48,000The company had 25,000 shares of common stock outstanding throughout the fiscal year.Compute each of the following:A. Operating incomeB. Income (loss) from continuing operations, before taxesC. Income (loss) before discontinued operations and the cumulative effect of the accounting changeD. Net income (loss)E. Net income (loss) available for common shareholdersF. Earnings per share from continuing operationsG. Earnings per share from discontinued operationsH. Earnings per share from the cumulative effect of the accounting changeI. Earnings per share from net income (loss)View Solution:
The Hot Aire Company reported the following items on its



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