Following is information taken from the accounting records of Kagawa Company at the end of 2009.
Net Sales, $660,000
Operating Income (from discontinued operations), $64,000
Cost of Goods Sold, $370,000
Gain on sales of Assets (from discontinued operations), $55,000
Operating Expenses, $134,000
Flood loss, $134,000
Kagawa had 150,000 shares of common stock issued and outstanding throughout the year.
Kagawa’s effective tax rate is 40 percent and is based in an area that does not normally experience floods. Kagawa’s taxable income from the tax return is $100,000.
Prepare an income statement for Kagawa Company for 2009, including earnings –per-share section.