From the following data for Norton Company for the year ended December 31, prepare a multiple-step income statement.

Show earnings per share for the following:

a) income from continuing operations,

b) loss on discontinued operations (less applicable income tax),

c) income before extraordinary item,

d) extraordinary item (less applicable income tax), and

e) net income.

Common stock, $50 par $200,000
Cost of merchandise sold 342,000
Administrative expenses 48,250
Income tax (applicable to continuing operations) 142,000
Interest expense 3,750
Loss on discontinued operations, net of applicable tax of $2,700 5,400
Sales 865,000
Selling expenses 83,000
Uninsured flood loss, net of applicable income tax of $4,500 14,000
Income Statement
Income statement or statement of financial performance measures the ability of the company to generate income. This composes of different items. Income from its own operations and the extraordinary items.

Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: pop hopadvertise doesn’t advertisefizzo advertise 10, 10 18, 2doesn’t advertise 2, 18 11, 11for example, the upper right cell shows that if fizzo advertises and pop hop doesn't advertise, fizzo will make a profit of $18 million, and pop hop will make a profit of $2 million. assume this is a simultaneous game and that fizzo and pop hop are both profit-maximizing firms. if fizzo decides to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise. if fizzo decides not to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise. if pop hop advertises, fizzo makes a higher profit if it chooses (not to advertise, to .if pop hop doesn't advertise, fizzo makes a higher profit if it chooses (not to advertise, to . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? fizzo will choose to advertise and pop hop will choose not to advertise. both firms will choose to advertise. fizzo will choose not to advertise and pop hop will choose to advertise. both firms will choose not to advertise. again, suppose that both firms start off not advertising. if the firms decide to collude, what strategies will they end up choosing? fizzo will choose not to advertise and pop hop will choose to advertise. both firms will choose not to advertise. fizzo will choose to advertise and pop hop will choose not to advertise. both firms will choose to advertise.