For the year ended December 31 Southern Supply had net sales

For the year ended December 31, Southern Supply had net sales of ST710.000, costs and other expenses (inckuding income tax) of $6,000,000, and a gain from discontinued operations (net of income tax) of $420,000. o. Prepare a condensed income statement (including earnings per share), assurming that 910,000 shares of common stock were outstanding throughout the year b. Which earnings per share figure would you recommend be used to compute the price-earnings ratio for Complete this question by entering your answers in the tabs below Required ARequired B Prepare a condensed income statement (including earnings per share), assuming that 910,000 shares of common stock were outstanding throughout the year. (Round Earnings per share of common stock to 2 decimal places.) SOUTHERN SUPPLY Income Statement For the Year Ended December 01 Current Year 0l

Solution

Southern Supply Income statement For the Year Ended December 31, 20xx Net sales $7,710,000 Cost and expenses $6,000,000 Income before extraordinary items $1,710,000 a Extraordinary gain, net of incometax $420,000 b Net Income $2,130,000 c Earnings per share of common stock: Earnings before extraordinary items $1.88 (a/910,000) Extraordinary gain $0.46 (b/910,000) Net earnings $2.34 (c/910,000)