The Hooper Book Companys accounting records include the following for 2018 (in thousands): Other revenues................................................................... $ 1,600 Income tax expense ........................................................... 5,640 Sales revenue ..................................................................... 122,000 Total operating expenses.................................................. 104,800 Requirements 1. Prepare Hooper Book Companys single-step income statement for the year ended December 31, 2018, including earnings per share (EPS). Hooper had 1,000,000 shares of common stock and no

Chapter 12, Short Exercises #37

The Hooper Book Company’s accounting records include the following for 2018 (in thousands):

Other revenues................................................................... $ 1,600

Income tax expense ........................................................... 5,640

Sales revenue ..................................................................... 122,000

Total operating expenses.................................................. 104,800

Requirements

1. Prepare Hooper Book Company’s single-step income statement for the year ended December 31, 2018, including earnings per share (EPS). Hooper had 1,000,000 shares of common stock and no preferred stock outstanding during the year.

2. Assume Hooper Book Company’s income from operations indicates that its core business has steadily increased by about 10% per year over the past three years and that none of its operations have been discontinued. What does this say about the quality of the company’s earnings?

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...