Question
Income Statement, Lower Portion At the beginning of 2016, Cameron Company's retained earnings was $221,700. For 2016, Cameron has calculated its pretax income from continuing
Income Statement, Lower Portion
At the beginning of 2016, Cameron Company's retained earnings was $221,700. For 2016, Cameron has calculated its pretax income from continuing operations to be $192,000. During 2016, the following events also occurred:
During July, Cameron sold Division M (a component of the company). It has determined that the pretax income from the operations of Division M during 2016 totals $46,300 and that a pretax loss of $48,800 was incurred on the sale of Division M.
Cameron had 35,000 shares of common stock outstanding during all of 2016. It declared and paid a $2 per share cash dividend on this stock.
Required:
Assuming that all the "pretax" items are subject to a 30% income tax rate:
1. Complete the lower portion of Cameron Company's 2016 income statement, beginning with "Pretax Income from Continuing Operations." Round earnings per share computations to two decimal places.
CAMERON COMPANY | ||
Partial Income Statement | ||
For Year Ended December 31, 2016 | ||
$ | ||
$ | ||
Results from discontinued operations | ||
$ | ||
$ | ||
Components of Income | EPS | |
$ | ||
$ |
2. Prepare an accompanying statement of retained earnings for the year ended December 31, 2016.
CAMERON COMPANY | |
Statement of Retained Earnings | |
For Year Ended December 31, 2016 | |
$ | |
$ | |
$ |
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