Answer:
Net Income 212,800
EPS: 2.128=2.13
Explanation:
The Interst and earthquake are not resutl from the main activity of the business so are calcualted as non-operating and losses.
Sales revenue 1,381,000
Sales discounts (46,000)
Sales returns and allowances (151,000)
Net Sales 1,184,000
Cost of goods sold (622,000)
Gross Profit 562,000
Selling expenses (195,000)
Administrative
and general expenses (98,000)
Operating Income 269,000
Non Operating Income
Interest revenue 87,000
Interest expense 61,000
Loss from
earthquake damage (151,000)
Net Non-Operating (3,000)
Income before taxes 266,000
Income tax expense (53,200)
Net Income 212,800
Earning Per Share: 2.13 (212,800/100,000)
