Question

The following information is available for Windsor Inc. for the year ended December 31, 2017:_______.

Answer 1

Answer:

Requirement

Prepare Income statement

Calculate the per share of common stock

                              Windsor Inc.

Income statement for the year ended December 31, 2017

Sales                                                               $3,775,000

Less: Cost of goods sold                               $1,648,000

Gross profit                                                     $2,127,000

Operating expenses

Selling expenses                        $876,000

Administrative expenses           $507000

Total operative expenses                               $1,383,000

Operative income                                            $744,000

Other revenues and (expenses):

Rent revenue                             $98000

Gain on sale of equipment        $31000

Interest expenses                      ($57,000)         $72,000

Income before income taxes                            $816,000

Income tax applicable to continuing                $297,000

operations

income from continuing operations                  $519,000

Discontinued operations:

Loss on discontinued operations    ($66000)

Income tax applicable to loss on    ($23,000)

discontinued operations

Total discontinued operations                             $89,000

Income before extraordinary item                       $430,000

Extraordinary item:

Loss on write-down of inventory                           ($37000)

Income after extraordinary item                            $393,000

Other comprehensive income:

Unrealized gain on available-for-sale securities    $27,000

Comprehensive Income                                          $420,000

EPS = Net Income of a company / Outstanding Shares

EPS = $420,000/200,000

EPS = $2.1 per share