The Calloway Book Company's accounting records include the following for 2016 (in thousands): Other revenues................................$ 2,300 Income

Question:

The Calloway Book Company's accounting records include the following for 2016 (in thousands):
Other revenues................................$ 2,300
Income tax expense............................7,950
Sales revenue.................................129,000
Total operating expenses...................104,800
Requirements
1. Prepare Calloway Book's single-step income statement for the year ended December 31, 2016, including EPS. Calloway Book had 1,000,000 shares of and no preferred stock outstanding during the year.
2. Assume Calloway Book Company's income from operations reflects that its core business been steadily increasing by about 10% per year over the past three years and that none of its operations have been discontinued. What does this say about the quality of its earnings?
3. Assume investors capitalize Calloway Book earnings from continuing operations at 8%. Estimate the price of one share of the company's stock.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...