Exercise 4-8 (Part Level Submission)

Presented below are selected ledger accounts of Monty Corporation as of December 31, 2017.

Cash		$63,600
Administrative expenses		109,900
Selling expenses		83,970
Net sales		557,000
Cost of goods sold		266,900
Cash dividends declared (2017)		20,830
Cash dividends paid (2017)		16,900
Discontinued operations (loss before income taxes)		40,500
Depreciation expense, not recorded in 2016		37,500
Retained earnings, December 31, 2016		93,570
Effective tax rate 30%

Calculation of Net Income:

Net sales	$ 557,000
Less: Cost of goods sold	$ (266,900)
Less: Selling expense	$ (83,970)
Less: Administrative expenses	$ (109,900)
Less: Loss on discontinued operation	$ (40,500)
Income before income tax	$ 55,730
Less:Income tax ($55,730*30%)	$ (16,719)
Net income	$ 39,011

Therefore, Net income = 39,011.

Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 18,700 shares of common stock were outstanding during 2017. (Round earnings per share to 2 decimal places, e.g. 1.58.)

Income From Continuing Operations Before Income Tax Income Tax Income From Continuing Operations Discontinued Operations, Net of Tax Net Income / (Loss) Earnings Per Share Income From Continuing Operations Loss on Discontinued Operations, Net of Tax Net Income/ (Loss)