Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.) Note:-
Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of
| 2019 | 2020 | ||||||||||||||||||
| 1stQ | 2ndQ | 3rdQ | 4thQ | 1stQ | |||||||||||||||
| Sales | $ | 14,000 | $ | 16,000 | $ | 18,000 | $ | 20,000 | $ | 22,000 | |||||||||
| Cost of goods sold (LIFO) | 4,400 | 5,400 | 6,200 | 7,400 | 8,900 | ||||||||||||||
| Operating expenses | 2,400 | 2,600 | 3,000 | 3,400 | 3,600 | ||||||||||||||
| Income before income taxes | $ | 7,200 | $ | 8,000 | $ | 8,800 | $ | 9,200 | $ | 9,500 | |||||||||
| Income taxes (25%) | 1,800 | 2,000 | 2,200 | 2,300 | 2,375 | ||||||||||||||
| Net income | $ | 5,400 | $ | 6,000 | $ | 6,600 | $ | 6,900 | $ | 7,125 | |||||||||
If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows:
| 2019 | 2020 | ||||||||||||||||||
| 1stQ | 2ndQ | 3rdQ | 4thQ | 1stQ | |||||||||||||||
| Cost of goods sold (FIFO) | $ | 4,200 | $ | 5,000 | $ | 5,600 | $ | 6,400 | $ | 7,800 | |||||||||
Sales for the second quarter of 2020 are $24,000, cost of goods sold under the FIFO method is $9,400, and operating expenses are $3,800. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding.
Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.)
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