During the current year, Sports +, Inc., operated two business segments: a chain of surf and dive shops and a small chain of tennis shops. The tennis shops were not profitable and were sold near year-end to another corporation. Sports + operations for the current year are summarized below. The first two captions, "Net sales" and "Costs and expenses," relate only to the company's continuing operations.
Net sales | $12,500,000 |
Costs and expenses (including applicable income tax) | 8,600,000 |
Operating loss from tennis shops (net of income tax benefit) | 192,000 |
Loss on sale of tennis shops (net of income tax benefit) | 348,000 |
The company had 182,000 shares of a single class of capital stock outstanding throughout the year.
a. Prepare a condensed income statement for the year. At the bottom of the statement, show any appropriate earnings per share figures. (A condensed income statement is illustrated in Exhibit 12-2.)
b. Which earnings per share figure in part a do you consider most useful in predicting future operating results for Sports +. Inc.? Why?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.