Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of inventoryvaluation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFOmethod follow:SalesCost of goods sold (LIFO)Operating expenses.Income before income taxes.Income taxes (25%)Net incomeCost of goods sold (FIFO)1stQ$ 34,0006,4004,400$ 23, 2005,800$ 17,4002ndQ$36,000Net incomeNet income per commonshare7,4004,600$ 24,0006,000$ 18,0002019If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters wouldhave been as follows:2019Three MonthsEnded June 3020192020$18,000$21,100 X$18.00$20.103rdQ$ 38,0008,2005,000$ 24,8006,200$ 18,6001stQ2ndQ3rdQ$6,200 $7,000 $7,600Answer is not complete.4thQ$ 40,0009,4005,400$ 25,2006,300$ 18,900Sales for the second quarter of 2020 are $44,000, cost of goods sold under the FIFO method is $11,400, and operating expenses are$5,800. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding.Six MonthsEnded June 302019202020201stQ$ 42,00010,9005,600$ 25,5006,375$ 19, 1254thQ$8,400Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period andthe six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.)20201stQ$9,800

The amount that remains after expenses, benefits, and taxes are subtracted from the earnings of a person or corporation is referred to as net income. Net income is significant as it displays a company's profit for the given time after accounting for all business-related expenses. A company's profit is divided by the number of outstanding shares of its common stock to get earnings per share or EPS. The outcome is a figure that indicates how profitable a business is. A corporation will frequently publish EPS that has been adjusted for unusual expenses and possible share dilution.Computation of net income and EPS for three-month period and six-month period:Formulae:The result of the above:The net income and EPS for the three months ending June 30 and the six months ending June 30 are provided above.Therefore,ParticularsThree months ended June 30Six months ended June 30Net income$18,300$20,100$35,850$40,050Net income per common share$18.30$20.10$35.85$40.05