The following data relate to the operations of Slick Software, Inc., during 2024:

Instructions

a. Prepare a condensed income statement for 2024, including earnings per share figures. Slick Software, Inc., had 200,000 shares of $1 par value common stock and 80,000 shares of 6.25 percent, $100 par value preferred stock outstanding throughout the year.

b. Prepare a statement of retained earnings for the year ended December 31, 2024. As originally reported, retained earnings at December 31, 2023, amounted to $7,285,000. (Treat the increase in 2023 depreciation expense as a negative adjustment to beginning 2024 retained earnings.)

c. Compute the amount of cash dividend per share of common stock declared by the board of directors for 2024. Assume no dividends in arrears on the preferred stock.

d. Assume that 2025 earnings per share is $8.00. Assume also that there are no changes in outstanding common or preferred stock in 2025. Do you consider the $8.00 earnings per share figure in 2025 to be a favorable or unfavorable figure in comparison with 2024 performance? Explain.

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Continuing operations: Net sales ... Costs and expenses (including applicable income tax). Other data: Operating income during 2024 on segment of the business discontinued near year-end (net of income tax) ...... Loss on disposal of discontinued segment (net of income tax benefit) Adjustment to increase 2023 depreciation expense, net of income tax benefit (correction of error) Total cash dividends declared on both preferred and common stock .... $19,850,000 16,900,000 140,000 550,000 350,000 950,000