Corporate Finance Assignment/ Professional Essay Writers
E11-16A (Learning Objectives 1, 4: Prepare an income statement; compute earnings per share; evaluate a company as an investment) The Moran Book Company accounting records include the following for 2012 (in thousands):
|
Other revenues ………………………………………………………………….. |
$ 1,700 |
|
Income tax expense—extraordinary gain ………………………………. |
800 |
|
Income tax expense—income from continuing operations………… |
4,040 |
|
Extraordinary gain …………………………………………………………….. |
2,000 |
|
Sales revenue …………………………………………………………………….. |
106,000 |
|
Total operating expenses…………………………………………………….. |
97,600 |
▶ Requirements
1. Prepare Moran Book’s single-step income statement for the year ended December 31, 2012, including EPS. Moran had 1,200 thousand shares of common stock and no preferred stock outstanding during the year.
2. Assume investors capitalize on Moran Book’s earnings from continuing operations at 9%. Estimate the price of one share of the company’s stock. Get Finance Help Today
