Wind Surfer Inc. produces and distributes equipment for sailboats. On the basis of the following data for the current fiscal year ended June 30, 2008, prepare a multiple-step income statement for Wind Surfer, including an analysis of earnings per share in the form illustrated in this chapter. There were 20,000 shares of $150 par common stock outstanding throughout the year.
Administrative expenses .................... $ 104,000
Cost of merchandise sold ................... 467,500
Gain on condemnation of land (extraordinary item) ........ 58,000
Income tax applicable to gain on condemnation of land ........ 23,200
Income tax reduction applicable to loss from discontinued operations . 32,000
Income tax applicable to income from continuing operations ...... 93,200
Loss on discontinued operations ................ 80,000
Loss from fixed asset impairment ................. 120,000
Restructuring charge ...................... 50,000
Sales ........................... 1,100,000
Selling expenses ........................ 125,500