Answer:
Waterway Inc.
Single-step income statement
Particular Amount
Sales Revenue $2,204,000
Add: Rent Revenue $46,400
Total Revenue $2,250,400
Less: Expense
Cost of goods sold $986,000
Selling Expense $348,000
Administrative Expenses $278,400
Total Expenses $1,612,400
Income from operations $638,000
Other revenues and gains
Add: Gain on sale of equipment $110,200
Other expenses and losses
Less: Loss on write-down of inventory $69,600
Income from continuing operations $678,600
before income taxes
Less: Income taxes $216,920
Income from continuing operations $461,680
Discontinued operations:
Loss on discontinued operations $87,000
Income tax at loss on discontinued $29,580 $116,580
operation
Net Income $345,100
Per share of common stock:
Income from continuing operations (income from continuing operations /share outstanding = ($461,680/ 100000) = $4.62
Loss on discontinued operations, net of tax ($116,580 /100000) = $1.17
Net Income ($345,100/100,000) = $3.45
