Presented below are selected ledger accounts of McGraw Corporation as of December 31, 2019.
Cash......................................................................€ 50,000
Administrative expenses.................................................100,000
Selling expenses............................................................80,000
Net sales..................................................................540,000
Cost of goods sold......................................................260,000
Cash dividends declared (2019) .......................................20,000
Cash dividends paid (2019) .............................................15,000
Discontinued operations (loss before income tax)....................40,000
Depreciation expense, not recorded in 2018...........................30,000
Retained earnings, December 31, 2018.................................90,000
Effective tax rate 30%
Instructions
a. Compute net income for 2019.
b. Prepare a partial income statement beginning with income before income tax, and including appropriate earnings per share information. Assume 20,000 ordinary shares were outstanding during 2019.