Income statement information for Nguyen Corporation in 2011 is as follows: a. Administrative expenses, $110,000 b. Cost

Question:

Income statement information for Nguyen Corporation in 2011 is as follows:

a. Administrative expenses, $110,000

b. Cost of goods sold, $440,000

c. Extraordinary loss from a storm (net of taxes, $10,000), $20,000

d. Income taxes expense, continuing operations, $42,000

e. Net sales, $890,000

f. Selling expenses, $190,000

Required

1. Prepare Nguyen Corporation’s income statement for 2011, including earnings per share, assuming a weighted average of 100,000 shares of common stock outstanding for 2011.

2. Which item in Nguyen Corporation’s income statement affects the company’s quality of earnings? Why does it have this effect?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...