Question

Problem 4-1 (Part Level Submission)

The following information is related to Sage Company for 2017 .

Answer 1

SAGE COMPANY
Income Statement
For the ended December 31,2017
Sales Revenue		$ 26,127,500
Less: Cost of goods sold		($16,124,600)
Gross profit		$ 10,002,900
less: Selling and administrative expenses		($4,784,900)
Income from operations		$ 5,218,000
Add: Other revenues and gains
Interest revenue	$ 78,600
Gain on the sale of investments	$ 115,700	$ 194,300
less: Other expenses and losses :
Write-Off-Goodwill		($838,700)
Income from continuing operations before income taxes		$ 4,573,600
Less: Income taxes		($ 1,398,900)
Income from continuing operations		$ 3,174,700
Less: Discontinued operations :
Loss on operations ,Net of tax	$ 90,320
Loss on disposal, Net of tax	$ 453,400	($543,720)
Income before extraordinary item		$ 2,630,980
less:Extraordinary item-Loss from food damage , Net of tax		($398,700)
Net income		$ 2,232,280
Earning Per Share :
Income from continuing operations { ($ 3,174,700- $75,430)/ 511,000 shares}		6.07
Less: Discontinued operations :
Loss on operations ,Net of tax ($ 90,320 / 511,000 shares)	( 0.18)
Loss on disposal, Net of tax ($453,400 / 511,000 shares)	( 0.89)	(1.07)
Income before extraordinary item { ($ 2,630,980- $75,430)/ 511,000 shares}		5
less:Extraordinary item-Loss , Net of tax ($398,700 / 511,000 shares)		(0.78)
Net income { ($ 2,232,280- $75,430)/ 511,000 shares}		4.22