Presented below are selected ledger accounts of McGraw Corporation as of December 31, 2015.

Instructions

(a) Compute net income for 2015.

(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 2015.

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Cash Administrative expenses Selling expenses Net sales 50,000 100,000 80,000 540,000 Cost of goods sold 260,000 Cash dividends declared (2015) 20,000 Cash dividends paid (2015) 15,000 Discontinued operations (loss before income tax) 40,000 Depreciation expense, not recorded in 2014 30,000 Retained earnings, December 31, 2014 90,000 Effective tax rate 30%