Corporations: Dividends, Retained Earnings, and income Reporting

The following information is available for Norman Corporation for the year ended December 31, 2020; sales revenue $700,000, other revenues and gains $92,000, operating expenses $110,000, cost of goods sold $465,000, other expenses and losses $32,000, and preferred stock dividends $30,000. The company's tax rate was 30%, and it had 50,000 shares outstanding during the entire year.

Instruction

1. Prepare a corporate income statement.
2. Calculate earnings per share

Solution