Mickey corporation decided to discontinue its retail

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Reference no: EM13568621

Presented below is pre-tax financial information of the Mickey Corporation for 20X8.

Cost of goods sold..........................................................................

21,000,000

Dividends declared on common stock.....................................

230,000

Dividends declared on preferred stock.....................................

80,000

Gain on the sale of investments (normal recurring).............

110,000

Interest revenue.................................................................................

70,000

Loss due to flood damage (unusual & infrequent)................

312,500

Loss on disposal of retail division..............................................

750,000

Loss on operations of retail division.........................................

1,150,000

Sales .....................................................................................................

30,000,000

Selling and administrative expenses............................................

5,500,000

Write-off of goodwill......................................................................

520,000



Federal income tax rate for 20X8................................................

40.0%

Mickey Corporation decided to discontinue its retail operations and to retain its manufacturing operations. On August 15, Mickey sold the retail operations to Schoen Company. During 2008, there were 250,000 shares of common stock outstanding all year.

Required:Prepare a multiple-step income statement for the year 20X8 and be sure to include earnings per share.

Reference no: EM13568621

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