Presented below are selected ledger accounts of McGraw Corporation as of December 31, 2012.
Cash $ 50,000
Administrative expenses 100,000
Selling expenses 80,000
Net sales 543,400
Cost of goods sold 229,100
Cash dividends declared (2012) 20,000
Cash dividends paid (2012) 15,000
Discontinued oper(loss before income taxes) 46,600
Depreciation expense, not recorded in 2011 30,000
Retained earnings, December 31, 2011 90,000
Effective tax rate 30%
(a) Compute net income for 2012. (List multiple entries from largest to smallest amount, e.g. 10, 5, 2. Enter all amounts as positive amounts and subtract where necessary.)
(b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 20,000 shares of common stock were outstanding during 2012. (Round earnings per share to 2 decimal places, e.g. 5.25 and all other answers to zero decimal places, e.g. 2,250. For earnings per share use either a negative sign preceding the number, e.g. 0.45 or parenthesis, e.g. (0.45) for negative numbers. Enter all other amounts as positive amounts and subtract where necessary.)
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