Problem

For the year ended December 31. Global Exports had net sales of $7,750,000, costs and othe...

For the year ended December 31. Global Exports had net sales of $7,750,000, costs and other expenses (including income tax) of $6,200,000, and an extraordinary gain (net of income tax) of $420,000.

a. Prepare a condensed income statement (including earnings per share), assuming that 910.000 shares of common stock were outstanding throughout the year. (A condensed income statement is illustrated in Exhibit 12-2.)


b.  Which earnings per share figure is used in computing the price-earnings ratio for Global Exports reported in financial publications such as The Wall Street Journal? Explain briefly.

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