Shown below is information relating to operations of Smith Company, Inc. for the year ended 2018...

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Shown below is information relating to operations of Smith Company, Inc. for the year ended 2018 Continuing operations: Net sales Cost and expenses (including income taxes) Other data 500,000 5,720,000 Current-year profit generated by segment of the business discontinued in May (net of income taxes $542100 Gain on disposal of discontinued segment (net of income taxes) Prior-period adjustment (decrease in prior years income net of tax benefit) Extraordinary loss (net of income tax benefit) Cash dividends declared ($6 per share) $185,900 $347,100 $325,000 520,000 100,000 shares of a single class of common stock outstanding throughout Smith Company, Inc. has the year e statement for Smith Company, Inc., including earnings per share figures.

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Answer 1

Answer #1

Smith Company, Inc.,
Income Statement
For the Year Ended 2018
Net sales	6500000
Cost and expenses (including income taxes)	5720000
Income from continuing operations	780000
Discontinued operations:
Income from discontinued operations (net of income tax)	542100
Gain on disposal of discontinued segment (net of income tax)	185900
Income from discontinued operations	728000
Income before extraordinary items	1508000
Extraordinary loss (net of income tax benefit)	325000
Net income $	1183000
Earnings per share:
Earnings from continuing operations	7.80
Earnings from discontinued operations	7.28
Earnings before extraordinary items	15.08
Less: Extraordinary loss	3.25
Net earnings per share $	11.83

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Answer 2

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