Problem: Please help me with this problem. Please provide a detailed explanation.
(Income Statement EPS) Presented below are selected ledger accounts of McGraw Corporation as of December 31, 2010
Cash................................................$ 50,000
Administrative Expenses........................ 100,000
Selling Expenses.................................. 80,000
Net Sales........................................... 540,000
Cost of Good Sold...................................260,000
Cash Dividends declared 2007.................... 20,000
Cash Dividends paid 2007...........................15,000
Discontinued Operation (loss bf.. Inc tax).........40,000
Depreciation Expense not rec.in 2006 ..........30,000
Retained Earnings Dec. 31, 2006 .......... 90,000
Effective Tax Rate 30%..........
Instructions:
a) Compute net income for 2010
b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 20,000 shares of common stock were outstanding during 2010.