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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer must be in table format or i will give down vote
Transcribed Image Text:Novak Inc.
Income Statement
For the Year Ended December 31
Income From Continuing Operations
Loss From Discontinued Operations
Net Income/(Loss)
$
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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