Question: For the year ended December 31 Global Exports had net

For the year ended December 31, Global Exports had net sales of $7,750,000, costs and other expenses (including income tax) of $6,200,000, and an extraordinary gain (net of income tax) of $420,000.
a. Prepare a condensed income statement (including earnings per share), assuming that 910,000 shares of common stock were outstanding throughout the year. (A condensed income statement is illustrated in Exhibit 12–2.)
b. Which earnings per share figure is used in computing the price-earnings ratio for Global
Exports reported in financial publications such as The Wall Street Journal? Explainbriefly.

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  • CreatedApril 17, 2014
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