Exercise: Shown below are the accounts of Coyote Corporation for 2014 .
Telephone and Internet expense (administrative) $ 20,000
Sales commissions 145,000
Sales revenue 885,000
Rent revenue 11,000
Office salary expenses 195,000
Major casualty loss (extraordinary item) 50,000
Loss on sale of equipment 3,000
Loss on disposal of a component of the business 30,000
Interest expense 13,000
Investment revenue 19,500
Dividend received 1,200
Cost of goods sold 408,500
Advertising expense 2,500
Required:
Prepare a multiple-step income statement for 2014 for Coyote Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Coyote Corporation has 50,000 shares of common stock outstanding and has a 30% federal income tax rate on all tax related items. Round all earnings per share figures to the nearest cent. Show four earnings per share calculations.
[Note: Special items are not 'net of tax'.]