The following list of items (accounts) was obtained from an annual report of Braun’s Fashions Corporation:
Depreciation and amortization .......... $ 2,052,707
Interest expense ................ 210,678
Merchandise, buying, and occupancy expenses .... 56,406,679
Provision for income taxes ............ 1,615,931
Selling, publicity, and administrative expenses .... 18,679,253
Net sales ................... 81,301,766
The following additional information is available:
1. The beginning balance of Retained Earnings was a deficit of $(14,536,277).
2. Braun’s has 3,664,625 common shares outstanding.
3. No dividends were declared during the period.
Required:
Use a computer spreadsheet.
A. Determine net income.
B. Determine the earnings per share.
C. Assume that in the following year, net sales were 15 percent greater, merchandise and taxes remained at the same percentage rate, and all other expenses remained at the same dollar amount. What would be the amount of net income for this period?