King Company, a manufacturer of mattresses, reported the following items on its income statement for 2004.

A. Net operating revenues, 845,000

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B. Cost of goods sold, 320,000

C. Selling and administrative expenses, 280,000

D. Research and development expenses, 78,000

E. Net interest expense, 4,000

F. Provision for income taxes, 50,000

G. Current year loss from discontinued operations of 30,000, net of tax benefit of 10,000

H. Loss from sale of discontinued operations of 100,000, net of tax benefit of 30,000

I. Cumulative effect (gain) of change in accounting principle of 120,000, net of tax of 40,000

J. Preferred stock dividends, 60,000

The company had 10,000 shares of common stock outstanding throughout the fiscal year.

Required Compute each of the following:

A. Operating income

B. Income (loss) from continuing operations, before taxes

C. Income (loss) before discontinued operations and the cumulative effect of the accounting change

D. Net income (loss)

E. Net income (loss) available for common shareholders

F. Earnings per share for continuing operations

G. Earnings per share for discontinued operations

H. Earnings per share for the cumulative effect of the accounting change

I. Earnings per share for net income (loss)


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