Question: *E3.8 (LO 2, 3, 6) (Income Statement, EPS) Presented below are selected ledger accounts of McGraw SA as of December 31, 2025. Cash 50,000

*E3.8 (LO 2, 3, 6) (Income Statement, EPS) Presented below are selected ledger accounts of McGraw SA as of December 31, 2025.

Cash € 50,000 Administrative expenses 100,000 Selling expenses 80,000 Net sales 540,000 Cost of goods sold 260,000 Cash dividends declared (2025) 20,000 Cash dividends paid (2025) 15,000 Discontinued operations (loss before income tax) 40,000 Depreciation expense, not recorded in 2024 30,000 Retained earnings, December 31, 2024 90,000 Effective tax rate 30%

Instructions

a. Compute net income for 2025.

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 2025.

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