Question

Prepare a​ multi-step income statement for Clarkston Motorsports for the fiscal year ended. Include earnings per share.

Selling expenses $125,000
Common stock, $10 par, 21,000 shares authorized and issued $210,000
General expenses 134,000
Income from discontinued operations 5,000
Preferred stock, $4, no-par 6,000 shares issued 240,000
Retained earnings, beginning 90,000
Cost of goods sold 430,000
Income tax expense: Continuing operations 70,000
Treasury stock, common (1,000 shares) 11,000
Income from discontinued operations 2,000
Net sales revenue 834,000
Complete the income statement in this step. and then identify and enter the applicable EPS amounts in the following step.
Clarkston Motorsports
Income statement
Year ended November 30,2016
Net Sales Revenue 863,000
Cost of Goods Sold 510,000
Gross Profit 35,3000
Selling Expenses
Administrative Expenses
Income Tax Expense
Income From Continuing Expense
Net Income

Answer 1

Clarkston Motorsports

Income statement Year ended November 30,2016

$ $

Net Sales Revenue 863,000

Cost of Goods Sold (510,000 )

Gross Profit 353,000

Selling Expenses

Selling expenses 125,000

Administrative Expenses

General expenses 134,000

Income Tax Expense 70,000

Income From Continuing Expense (329,000)

Net Income 24,000

Earnings Per Share (Continuing Operations) $1.14

Earnings Per Share (Discontinued Operations) $0.10

Step-by-step explanation:

Continuing Operations

Earnings Per Share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks Outstanding

= $ 24,000 ÷ 21,000

= $1.14

Discontinued Operations

Earnings Per Share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks Outstanding

= $ 2,000 ÷ 21,000

= $0.10