The following information was taken from the records of Munez â€‹ Motorsports, Inc. at November 30â€‹, 2018â€‹ : Prepare a multi-step income statement for Clarkston Motorsports for the fiscal year ended November 30, 2018. Include earnings per share. Clarkston Motorsports, Inc. Income Statement Year Ended November 30, 2018 1Selling Expenses $130,000 Common Stock, $18 Par ValueAdministrative Expenses 120,000 12,000 shares authorized and issued $216,000Income From Discontinued Preferred Stock, $4 No-Par ValueOperations 2,400 Cost of Goods Sold 425,000 4,000 shares issued 160,000 Treasury Stock-Common Income Tax Expense: continuing Operations Income from Discontinued Operations 960

Question

Cortez Ingram

Business

26 February, 15:26

The following information was taken from the records of Munez â€‹ Motorsports, Inc. at November 30â€‹, 2018â€‹ : Prepare a multi-step income statement for Clarkston Motorsports for the fiscal year ended November 30, 2018. Include earnings per share. Clarkston Motorsports, Inc. Income Statement Year Ended November 30, 2018 1Selling Expenses $130,000 Common Stock, $18 Par ValueAdministrative Expenses 120,000 12,000 shares authorized and issued $216,000Income From Discontinued Preferred Stock, $4 No-Par ValueOperations 2,400 Cost of Goods Sold 425,000 4,000 shares issued 160,000 Treasury Stock-Common Income Tax Expense: continuing Operations Income from Discontinued Operations 960

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Ginger · Answer 1

FAnswer:

Explanation:

Income Statement

Net sales Revenue 7464000

Less Cost of goods sold 4250000

Gross Profit 3214000

Operating Expenses

Selling Expenses 130000

Admin Expenses 120000 250000

Income from continuing operation 71,400

before income tax

Income tax expenses 35000

Income tax from continuing operation 36,400

Income from discontinuing operation. 1,440

Net of tax (2400-960)

Net Income. 37,840

Earning per Share

Income from continuing operation = (36400-16000) / (12000-4000) = $2.55

Income from discontinuing operations = (1440) / (12000-4000) = $0.18

Net Income = $2.55 / $0.18

Net Income = $2.71

Dividend to preferred stock = 4000 * 4 = $16,000