For the year ended December 31, Southern Supply had net sales of $7,420,000, costs and other expenses (including income tax) of $5,790,000, and an extraordinary gain (net of income tax) of $420,000.

a.

Prepare a condensed income statement (including earnings per share), assuming that 910,000 shares of common stock were outstanding throughout the year. (Round Earnings per share of common stock to 2 decimal places.) b. Which earnings per share figure is used in computing the price-earnings ratio for Southern Supply reported in financial publications such as The Wall Street Journal? EPS on earnings before extraordinary items or EPS on net earnings