Requirement

1.

Prepare a multi-step income statement for Clarkson Motorsports for the fiscal year ended November 30, 2012. Include earnings per share. Selling expenses $125,000 Common stock, $10 par, 21,000 shares authorized and issued $210,000 General expenses 134,000 Income from discontinued operations 5,000 Preferred stock, $4, no-par 6,000 shares issued 240,000 Retained earnings, beginning 90,000 Cost of goods sold 430,000 Income tax expense: Continuing operations 70,000 Treasury stock, common (1,000 shares) 11,000 Income from discontinued operations 2,000 Net sales revenue 834,000