Chapter 12 Practice Problems Problem 1 Smith corporation had net income of $400,000 in 2019. They had 100,000 shares of common stock and 10,000 shares of 4% $100 par value preferred stock outstanding for the entire year. Compute the Earnings Per Share for Smith corporation. Problem 2 Duman industries had the following elements of revenue and expenses in 2018. Duman manufacturers televisions and computers, however, in 2018, they decided to sell their computer segment of the business. The financial results are shown below Sales $900,000 Cost of Goods Sold 600,000 Expenses 100,000 Operating loss on computer segment) net (240,000) Gain on sale of Computer segment 300,000 Prepare a condensed income statement for Duman Industries. Duman Industries had 100,000 shares of common stock outstanding for the entire year. (Be sure to include Earnings per share data in your income statement.)