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Consider the following: The following information is taken from the draft financial statement of Northstar Corp. at their October 31, 2015 year end. Income from
Consider the following:
The following information is taken from the draft financial statement of Northstar Corp. at their October 31, 2015 year end. Income from continuing operations before taxes is $5,500,000. The average tax rate for the company is 31%. There are 270,000 common shares outstanding. Northstar Corp. follows IFRS. Additional transactions which are not included in the above figures are as follows: 1. Furniture costing $780,000, with a book value of $286,000 was sold for $322,000. 2. Disposal of a division generated a $170,000 loss before tax. 3. The fair value of Available for Sale (AFS) investments decreased by a pre-tax amount of $14,000. 4. Obsolete inventory was written off for $407,000. 5. A prior period lawsuit, which had been deemed unlikely and unestimable, was settled and the company received $371,000. 6. An underestimation of bad debts from 2013 totalling $6,500 was found and charged to retained earnings. This was due to a calculation error. Please make sure your final answers are accurate to the nearest whole number unless otherwise stated. a) Calculate income before tax and discontinued operations. Income = $ b) Calculate net income before discontinued operations. Net income = $ c) Calculate net income. Net income = $ d) Calculate comprehensive income/loss. Comprehensive income (loss) = $ e) Calculate earnings per common share (EPS) from net income. Please make sure your final answer(s) are accurate to 2 decimal places. EPS = $Step by Step Solution
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