For the year ended December 31, Southern Supply had net sales of $3,875,000, costs and other expenses (including income tax) of $3,100,000, and a gain from discontinued operations (net of income tax) of $210,000. a. To the extent possible from the limited information provided, prepare a condensed income statement (including earnings per share), assuming that 620,000 shares of common stock were outstanding throughout the year. (A condensed income statement is illustrated in Exhibit 12-2.) b. Which earnings per share figure would you recommend be used to compute the price-earnings ratio for Southern Supply? Explain briefly. EXHIBIT 12-2 Earning per Share Presentation Net sales PERRY CORPORATION CONDENSED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 Costs and expenses (including tax on $9,115,000 8,310,000 continuing operations) ... Income from continuing operations Loss from discontinued operations (net of income tax benefits) Net income Earnings per share of common stock: Earnings from continuing operations Loss from discontinued operations Net income ($805,000-$72,000 preferred dividends) 200,000 shares ($595,000-$72,000) 200,000 shares $ 805,000 (210,000) $ 595,000 $3.67 (1.05) $2.62b Exercise 12.5 Part A Net sales SOUTHERN SUPPLY Income Statement For the Year Ended December 31, Current Year Less: Costs and expenses (including income tax) Income before continuing operations Discontinued operations, net of income tax Net income Earnings per share: Income from continuing operations Discontinued operations Net income Part B