Reference no: EM131812206

Question - Presented below are selected ledger accounts of McGraw Corporation as of December 31, 2012.

Cash $ 50,000

Administrative expenses 100,000

Selling expenses 80,000

Net sales 543,400

Cost of goods sold 229,100

Cash dividends declared (2012) 20,000

Cash dividends paid (2012) 15,000

Discontinued oper(loss before income taxes) 46,600

Depreciation expense, not recorded in 2011 30,000

Retained earnings, December 31, 2011 90,000

Effective tax rate 30%

(a) Compute net income for 2012.

(b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 20,000 shares of common stock were outstanding during 2012.