EXERCISE 1 Shown below is information relating to operations of Summerfield Corporation for the year ended 2021: Continu

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EXERCISE 1
Shown below is information relating to operations of Summerfield
Corporation for the year ended 2021:
Continuing operations:
Net sales
€6,500,000
Cost and expenses (including income taxes)
€5,720,000
Other data:
Current-year profit generated by segment of the business
discontinued in August (net of income taxes )
€542,100
Gain on disposal of discontinued segment (net of income
taxes)
€185,900
Prior-period adjustment (decrease in prior years' income net of
tax benefit)
€347,100
Extraordinary loss (net of income tax benefit)
€325,000
Cash dividends declared
€520,000
Instructions:
1. Prepare a condensed income statement for the year ended
December 31, 2021, including earnings per share figures. The
company had 100,000 shares of a single class of capital stock
outstanding throughout the year.
2 .Prepare a statement of retained earnings for the year ended
December 31, 2021. As originally reported, retained earnings at
December 31, 2018, amounted to €6,135,000.
3 .Assume that 2022 earnings per share is a single figure and
amounts to €8.00. Assume also that there are no changes in
outstanding capital stock in 2022. Do you consider the €8.00
earnings per share figure in 2022 to be a favorable or unfavorable
figure in comparison with 2021 performance? Explain.
please answers1, 2,3