Presented below are selected ledger accounts of McGraw Corporation as of December 31, 2012.
- Cash $ 50,000
- Administrative expenses 100,000
- Selling expenses 80,000
- Net sales 544,100
- Cost of goods sold 219,700
- Cash dividends declared (2012) 20,000
- Cash dividends paid (2012) 15,000
- Discontinued operations (loss before income taxes) 41,400
- Depreciation expense, not recorded in 2011 30,000
- Retained earnings, December 31, 2011 90,000
- Effective tax rate 30%
(a) Compute net income for 2012
(b) Prepare a partial income statement beginning with the income from continuing operations before income tax, and including appropriate earnings per share information. Assume 20,000 shares of common stock were outstanding during 2012.