The Wall Street Journal routinely publishes summaries of corporate quarterly and annual earnings reports in a feature called the Earnings Digest. A typical digest report takes the following form. ENERGY ENTERPRISES (A) Quarter ending July 31 2014 2013 Sales revenue $2,049,000,000 $1,754,000,000 Net income 97,000,000 (a) 68,750,000 EPS: Net income 1.28 0.93 12 months ending July 31 2014 2013 Sales revenue $5,578,500,000 $5,065,300,000 Extraordinary item (b) 1,900,000 Net income 102,700,000 (a) 33,250,000 EPS: Net income 1.36 0.48 (a) Includes a net charge of $26,000,000 from loss on the sale of electrical equipment (b) Extraordinary gain on Middle East property expropriation The letter in parentheses following the company name indicates the exchange on which Energy Enterprises stock is tradedin this case, the American Stock Exchange. Answer the following questions. (a) How was the loss on the electrical equipment reported on the income statement? Was it reported in the fourth quarter of 2013? How can you tell? (b) Why did the Wall Street Journal list the extraordinary item separately? (c) What is the extraordinary item? Was it included in income for the fourth quarter? How can you tell? (d) Did Energy Enterprises have an operating loss in any quarter of 2013? Of 2014? How do you know? (e) Approximately how many shares of stock were outstanding in 2014? Did the number of outstanding shares change from July 31, 2013 to July 31, 2014? (f) As an investor, what numbers should you use to determine Energy Enterprises profit margin? Calculate the profit margin for 2013 and 2014 that you consider most useful. Explain your decision