Presented below are selected ledger accounts of McGraw SA as of December 31, 2022.

Cash ......................................................................................... € 50,000
Administrative expenses ....................................................... 100,000
Selling expenses ....................................................................... 80,000
Net sales .................................................................................. 540,000
Cost of goods sold .................................................................. 260,000
Cash dividends declared (2022) .............................................. 20,000
Cash dividends paid (2022) ...................................................... 15,000
Discontinued operations (loss before income tax) ............... 40,000
Depreciation expense, not recorded in 2021 ......................... 30,000
Retained earnings, December 31, 2021 ................................... 90,000
Effective tax rate ............................................................................. 30%

Instructions

a. Compute net income for 2022.

b. Prepare a partial income statement beginning with income before income tax, and include appropriate earnings per share information. Assume 20,000 ordinary shares were outstanding during 2022.