Question

Presented below are selected ledger accounts of Marigold Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% $43,000 86,000 68,800 464,400 180,600 17,200 12,900 34,400 25,800 77,400 Compute net income for 2020. Net income $

Answer 1

Net Income

$       75,680.00

Income from continuing Operations before income tax		$    1,29,000.00
Less: Income tax @20%		$       25,800.00
Income from continuing Operations		$    1,03,200.00
Loss from discontinues operations, Net of tax @20%	=34400*(1-20%)	$      -27,520.00
Net Income		$       75,680.00
Earnings per share
Earnings per share of continuing Operations	=103200/10000	$                10.32
Earnings per share of Extraordinary Items	=-27520/10000	$                -2.75
Net Earnings per share		$                  7.57

Working:

Net Sales		$    4,64,400.00
Less: Cost of goods sold		$ -1,80,600.00
Gross Profit		$    2,83,800.00
Less: Operating Expenses
Selling Expense	$      -68,800.00
Administrative Expense	$      -86,000.00	$ -1,54,800.00
Income from continuing Operations before income tax		$    1,29,000.00

Answer 2

[REMOVED]