From the Following Data for Norton Company for the Year

question 42

Essay

From the following data for Norton Company for the year ended December 31,2012 prepare a multiple-step income statement.Show parenthetically earnings per share for the following: income from continuing operations,loss on discontinued operations (less applicable income tax),income before extraordinary item,extraordinary item (less applicable income tax),and net income.
$\begin{array}{ll}\text { Common stock } \$ 50 \text { par } & \$ 200,000 \\\text { Cost of merchandise sold } & 342,000 \\\text { Administrative expenses } & 48,250 \\\text { Income tax (applicable to continuing operations) } & 142,000 \\\text { Interest expense } & 3,750\\\text { Loss on discontinued operations, }\\\text { net of applicable tax of } \$ 2,700 & 5,400 \\\text { Sales } & 865,000 \\\text { Selling expenses } & 83,000\\\text { Uninsured floodloss, net of applicable }\\\text { income tax of } \$ 4,500&14,000\end{array}$

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Definitions:

Process Innovations

Improvements or significant changes in the methods or procedures by which goods and services are produced or delivered.

Diffusion

A method where a new idea is spread via specific pathways over a period among individuals within a societal structure.

Substantial Diffusion

The wide and significant spread of ideas, practices, or innovations across a large population or area.

Complex Innovations

Innovations that involve multiple interdependent elements and changes, requiring comprehensive understanding and adaptability for successful implementation.