I need the exact format for the earnings per share please
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I need the exact format for the earnings per share please
![REED COMPANY
December 31
2021
2020
$ 4,400,000 $ 3,500,000
2,860,000
800,000
360,000
150,000
200,000
48,000
Sales revenue
2,000,000
675,000
302,000
140,000
200,000
Cost of goods sold
Administrative expense
Selling expense
Interest revenue
Interest expense
Loss on sale of assets of discontinued component
1/1/21 -
Results of operations for discontinued component (included above):
Sales
Cost of goods sold
Administrative expense
Selling expenses
Operating income before taxes
9/30/21
2020
400,000 $
(290,000)
(50,000)
(20,000)
40,000 '$ 120,000
500,000
(320,000)
(40,000)
(20,000)
Additional information:
Uninsured damage due to fire
Cost of obsolete inventory
Obsolete inventory sold for scrap
50,000
40,000
5,000
Income tax rate
25%
Common stock shares
300,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7477b2b-b137-4625-bf51-1a1c6312e739%2F0a212bab-461c-470c-81a5-d541ccd9ad59%2Fzwz7de_processed.png&w=3840&q=75)
Transcribed Image Text:REED COMPANY
December 31
2021
2020
$ 4,400,000 $ 3,500,000
2,860,000
800,000
360,000
150,000
200,000
48,000
Sales revenue
2,000,000
675,000
302,000
140,000
200,000
Cost of goods sold
Administrative expense
Selling expense
Interest revenue
Interest expense
Loss on sale of assets of discontinued component
1/1/21 -
Results of operations for discontinued component (included above):
Sales
Cost of goods sold
Administrative expense
Selling expenses
Operating income before taxes
9/30/21
2020
400,000 $
(290,000)
(50,000)
(20,000)
40,000 '$ 120,000
500,000
(320,000)
(40,000)
(20,000)
Additional information:
Uninsured damage due to fire
Cost of obsolete inventory
Obsolete inventory sold for scrap
50,000
40,000
5,000
Income tax rate
25%
Common stock shares
300,000
![Comparative Income Statements
for the Years Ended December 31
2021
2020
$ 4,000,000 $ 3,000,000
(2,570,000)
1,430,000
Sales revenue
Cost of goods sold
Gross profit
Cperating ererses:
Administrative expense
Selling expense
Loss on building (fire damage)
Loss on inventory write-down
Total operating expenses
(1,680,000)
1,320,000
(750,000)
(340,000)
(50,000)
(35,000)
(1,175,000)
255,000
(635,000)
(282,000)
(917,000)
403,000
Operating income
Cther inccme (exnense
Interest revenue
Interest expense
Total other income (net)
Income from continuing operations before
income taxes
Income tax expense
Income from continuing operations
Discontinued operations:
Income (loss) from operations of discontinued
component (inoluding loss on disposal of
$48,000 in 2021)
Income tax benefit (expense)
Income (loss) on discontinued operations
150,000
140,000
(200,000)
(50,000)
(200,000)
(60,000)
205,000
(51,250)
153,750
343,000
[85,750)
257,250
(8,000)
2,000
(6,000)
147,750 $ 347,250
120,000
(3,000)
90,000
Net income
Correct!
Correct!
Earnings per shave:
Income from continuing operations before
Discontinued operations
300,000 shares
1.14
Net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7477b2b-b137-4625-bf51-1a1c6312e739%2F0a212bab-461c-470c-81a5-d541ccd9ad59%2Fuvbn7vk_processed.png&w=3840&q=75)
Transcribed Image Text:Comparative Income Statements
for the Years Ended December 31
2021
2020
$ 4,000,000 $ 3,000,000
(2,570,000)
1,430,000
Sales revenue
Cost of goods sold
Gross profit
Cperating ererses:
Administrative expense
Selling expense
Loss on building (fire damage)
Loss on inventory write-down
Total operating expenses
(1,680,000)
1,320,000
(750,000)
(340,000)
(50,000)
(35,000)
(1,175,000)
255,000
(635,000)
(282,000)
(917,000)
403,000
Operating income
Cther inccme (exnense
Interest revenue
Interest expense
Total other income (net)
Income from continuing operations before
income taxes
Income tax expense
Income from continuing operations
Discontinued operations:
Income (loss) from operations of discontinued
component (inoluding loss on disposal of
$48,000 in 2021)
Income tax benefit (expense)
Income (loss) on discontinued operations
150,000
140,000
(200,000)
(50,000)
(200,000)
(60,000)
205,000
(51,250)
153,750
343,000
[85,750)
257,250
(8,000)
2,000
(6,000)
147,750 $ 347,250
120,000
(3,000)
90,000
Net income
Correct!
Correct!
Earnings per shave:
Income from continuing operations before
Discontinued operations
300,000 shares
1.14
Net income
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