income statment

Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2012 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue Purchase discounts Purchases Earthquake loss (net of tax) (extraordinary item) Selling expenses Cash Accounts receivable Common stock Accumulated depreciation-machinery Dividend revenue Inventory, January 1, 2012 Inventory, December 31, 2012 Unearned service revenue Interest payable Land Patents Retained earnings, January 1, 2012 Interest expense Administrative expenses Dividends declared Allowance for doubtful accounts Notes payable (maturity 7/1/15) Machinery Materials Accounts payable $1,100,000 18,000 692,000 35,000 128,000 60,000 90,000 200,000 180,000 8,000 152,000 125,000 4,400 1,000 370,000 100,000 290,000 17,000 170,000 24,000 5,000 200,000 450,000 40,000 60,000 The amount of income taxes applicable to ordinary income was $27,600, excluding the tax effect of the earthquake loss which amounted to $15,000. Instructions (a) Prepare a multiple-step income statement on the following blank page (p.11). What is Porter's net income? (5 points) (b) Calculate all EPS items (5 points) A) Sales Revenue Sale 1,100,000 Sales Return and Allowance (90,000) 1,010,000 Cost of Goods Sold 152,000+692,000-125,000=719,000 Gross Profit 291,000 Operating Expense Selling expenses (128,000) Operating Income Other Gain losses Interest Expense (17,000) Dividend revenue 8,000 Net income before tax Taxes (27,600) Income from continuing operations Income from discontinuing operations Extraordinary loss (35,000) Net income