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Crazy Horse, Inc. Income Statement For the year ended December 31, 2005 Sales $25,000,000 Cost of Goods Sold (17,000,000) Gross Profit 8,000,000 Operating Expenses: Selling, General and Administrative (4,700,000) Operating Income 3,300,000 Other revenues and gains: Interest revenue $ 70,000 Gain on sale of investments 110,000 180,000 Other expenses and losses: Write-off of goodwill (520,000) Income from continuing operations before taxes 2,960,000 Income tax expense (888,000) Income from continuing operations 2,072,000 Discontinued operations: Operating income, net of $90,000 taxes 210,000 Loss on disposal, net of $180,000 taxes (420,000) (210,000) Income before extraordinary loss 1,862,000 Extraordinary Loss-Flood damage, net of $150,000 taxes
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Unformatted text preview: (350,000) Net income $1,512,000 Earnings per share: Income from continuing operations $6.67* Discontinued operations (.70) Extraordinary loss (1.17) Net Income $4.80 *{2,072,000 – 70,000 (preferred dividends)}/300,000 shares = $6.67 per share Crazy Horse, Inc. Statement of Retained Earnings For the year ended December 31, 2005 Retained Earnings, December 31, 2004 $980,000 Add: Net Income for 2005 1,512,000 Less: Common Stock Dividends Declared for 2005 250,000 Less: Preferred Stock Dividends Declared for 2005 70,000 Retained Earnings, December 31, 2005 $2,172,000...
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This note was uploaded on 02/12/2012 for the course ACCT 3001 taught by Professor Moffitt during the Spring '08 term at LSU.

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