The following data relate to the operations of Slick Software, Inc., during 2021.

Continuing operations: Net sales $ 19,850,000 Costs and expenses (including applicable income tax) 16,900,000 Other data: Operating income during 2021 on segment of the business discontinued near year-end (net of income tax) 140,000 Loss on disposal of discontinued segment (net of income tax benefit) 550,000 Prior period adjustment (increase in 2020 depreciation expense, net of income tax benefit) 350,000 Cash dividends declared 950,000

Required:

a. Prepare a condensed income statement for 2021, including earnings per share figures. Slick Software, Inc., had 200,000 shares of $1 par value common stock and 80,000 shares of $6.25, $100 par value preferred stock outstanding throughout the year.

b. Prepare a statement of retained earnings for the year ended December 31, 2021. As originally reported, retained earnings at December 31, 2020, amounted to $7,285,000.

c. Compute the amount of cash dividend per share of common stock declared by the board of directors for 2021. Assume no dividends in arrears on the preferred stock.

d. Assume that 2021 earnings per share is a single figure and amounts to $8.00. Assume also that there are no changes in outstanding common or preferred stock in 2022. Do you consider the $8.00 earnings per share figure in 2022 to be a favorable or unfavorable figure in comparison with 2021 performance?

Complete this question by entering your answers in the tabs below.

Prepare a condensed income statement for 2021, including earnings per share figures. Slick Software, Inc., had 200,000 shares of $1 par value common stock and 80,000 shares of $6.25, $100 par value preferred stock outstanding throughout the year. (Round Earnings per share to 2 decimal places.)

SLICK SOFTWARE, INC. Condensed Income Statement For the Year Ended December 31, 2021 $0 Discontinued operations: $0 Earnings per share: Net earnings

SLICK SOFTWARE, INC. Statement of Retained Earnings For the Year Ended December 31, 2021 Retained earnings, December 31, 2020 As originally reported As restated $0 Subtotal $0 Retained earnings, December 31, 2021 $0

Compute the amount of cash dividend per share of common stock declared by the board of directors for 2021. Assume no dividends in arrears on the preferred stock. (Round your answer to 2 decimal places.)

Cash dividend

per share

Assume that 2021 earnings per share is a single figure and amounts to $8.00. Assume also that there are no changes in outstanding common or preferred stock in 2022. Do you consider the $8.00 earnings per share figure in 2022 to be a favorable or unfavorable figure in comparison with 2021 performance?

Do you consider the $8.00 earnings per share figure in 2022 to be a favorable or unfavorable figure in comparison with 2021 performance?