Presented below is financial information of the Martin Corporation for 2017. Gain on the sale of investments 160,000
Net sales 45,000,000
Cost of goods sold 31,000,000
Loss on disposal of wholesale division 670,000
Interest revenue 105,000
Loss on operations of wholesale division 690,000
Selling and administrative expenses 8,200,000
Dividends declared on common stock 340,000
Write off of goodwill 780,000
Dividends declared on preferred stock 120,000
Effective tax rate on all items is 34%
Martin Corporation decided to discontinue its wholesale operations and to retain their manufacturing operations. On July 1, Martin sold the wholesale operations. During 2017, there were 800,000 shares of common stock outstanding all year. Instructions Compute each of the following.
1. Income from operations
2. Income before income tax
3. Income from continuing operations
4. Net income
5. Earnings per share