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Novak Inc. Income Statement For the Year Ended December 31 Income From Continuing Operations Loss From Discontinued Operations Net Income/(Loss) $ A portion of the combined statement of income and retained earnings of Novak Inc. for the current year follows. Income before extraordinary item Loss from discontinued operations, net of applicable income tax (Note 1) Net income Retained earnings at the beginning of the year Dividends declared: On preferred stock-$6.00 per share On common stock-$1.75 per share $15,040,000 1,370,000 13,670,000 82,490,000 96,160,000 $294,000 15,080,000 15,374,000 $80,786,000 Retained earnings at the end of the year Note 1. During the year, Novak Inc. suffered a major loss from discontinued operations of $1,370,000 after applicable income tax reduction of $1,170,000. At the end of the current year, Novak Inc. has outstanding 8,380,000 shares of $10 par common stock and 49,000 shares of 6% preferred. On April 1 of the current year, Novak Inc. issued 990,000 shares of common stock for $30 per share to help finance the loss from discontinued operations. Compute the earnings per share on common stock for the current year as it should be reported to stockholders. (Round answer to 2 decimal places, eg. $2.55.)

Novak Inc. Income Statement For the Year Ended December 31 Income From Continuing Operations Loss From Discontinued Operations Net Income/(Loss) $ A portion of the combined statement of income and retained earnings of Novak Inc. for the current year follows. Income before extraordinary item Loss from discontinued operations, net of applicable income tax (Note 1) Net income Retained earnings at the beginning of the year Dividends declared: On preferred stock-$6.00 per share On common stock-$1.75 per share $15,040,000 1,370,000 13,670,000 82,490,000 96,160,000 $294,000 15,080,000 15,374,000 $80,786,000 Retained earnings at the end of the year Note 1. During the year, Novak Inc. suffered a major loss from discontinued operations of $1,370,000 after applicable income tax reduction of $1,170,000. At the end of the current year, Novak Inc. has outstanding 8,380,000 shares of $10 par common stock and 49,000 shares of 6% preferred. On April 1 of the current year, Novak Inc. issued 990,000 shares of common stock for $30 per share to help finance the loss from discontinued operations. Compute the earnings per share on common stock for the current year as it should be reported to stockholders. (Round answer to 2 decimal places, eg. $2.55.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Novak Inc. Income Statement For the Year Ended December 31 Income From Continuing Operations Loss From Discontinued Operations Net Income/(Loss) $
Transcribed Image Text:Novak Inc. Income Statement For the Year Ended December 31 Income From Continuing Operations Loss From Discontinued Operations Net Income/(Loss) $
A portion of the combined statement of income and retained earnings of Novak Inc. for the current year follows. Income before extraordinary item Loss from discontinued operations, net of applicable income tax (Note 1) Net income Retained earnings at the beginning of the year Dividends declared: On preferred stock-$6.00 per share On common stock-$1.75 per share $15,040,000 1,370,000 13,670,000 82,490,000 96,160,000 $294,000 15,080,000 15,374,000 $80,786,000 Retained earnings at the end of the year Note 1. During the year, Novak Inc. suffered a major loss from discontinued operations of $1,370,000 after applicable income tax reduction of $1,170,000. At the end of the current year, Novak Inc. has outstanding 8,380,000 shares of $10 par common stock and 49,000 shares of 6% preferred. On April 1 of the current year, Novak Inc. issued 990,000 shares of common stock for $30 per share to help finance the loss from discontinued operations. Compute the earnings per share on common stock for the current year as it should be reported to stockholders. (Round answer to 2 decimal places, eg. $2.55.)
Transcribed Image Text:A portion of the combined statement of income and retained earnings of Novak Inc. for the current year follows. Income before extraordinary item Loss from discontinued operations, net of applicable income tax (Note 1) Net income Retained earnings at the beginning of the year Dividends declared: On preferred stock-$6.00 per share On common stock-$1.75 per share $15,040,000 1,370,000 13,670,000 82,490,000 96,160,000 $294,000 15,080,000 15,374,000 $80,786,000 Retained earnings at the end of the year Note 1. During the year, Novak Inc. suffered a major loss from discontinued operations of $1,370,000 after applicable income tax reduction of $1,170,000. At the end of the current year, Novak Inc. has outstanding 8,380,000 shares of $10 par common stock and 49,000 shares of 6% preferred. On April 1 of the current year, Novak Inc. issued 990,000 shares of common stock for $30 per share to help finance the loss from discontinued operations. Compute the earnings per share on common stock for the current year as it should be reported to stockholders. (Round answer to 2 decimal places, eg. $2.55.)
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