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11 October, 23:30

The following information was taken from the records of Munez ​ Motorsports, Inc. at November 30​, 2018​ : Prepare a multi-step income statement for Clarkston Motorsports for the fiscal year ended November 30, 2018. Include earnings per share. Clarkston Motorsports, Inc. Income Statement Year Ended November 30, 2018 1Selling Expenses $130,000 Common Stock, $18 Par ValueAdministrative Expenses 120,000 12,000 shares authorized and issued $216,000Income From Discontinued Preferred Stock, $4 No-Par ValueOperations 2,400 Cost of Goods Sold 425,000 4,000 shares issued 160,000 Treasury Stock-Common Income Tax Expense: continuing Operations Income from Discontinued Operations 960

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  1. 12 October, 02:04
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    FAnswer:

    Explanation:

    Income Statement

    Net sales Revenue 7464000

    Less Cost of goods sold 4250000

    Gross Profit 3214000

    Operating Expenses

    Selling Expenses 130000

    Admin Expenses 120000 250000

    Income from continuing operation 71,400

    before income tax

    Income tax expenses 35000

    Income tax from continuing operation 36,400

    Income from discontinuing operation. 1,440

    Net of tax (2400-960)

    Net Income. 37,840

    Earning per Share

    Income from continuing operation = (36400-16000) / (12000-4000) = $2.55

    Income from discontinuing operations = (1440) / (12000-4000) = $0.18

    Net Income = $2.55 / $0.18

    Net Income = $2.71

    Dividend to preferred stock = 4000 * 4 = $16,000
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