Chapter 17 Homework Problems1. Alamo, Inc. had 480,000 shares of common stock outstanding on January 1, 2010. An additional 150,000 shares were issued on May 1, 2010, and 60,000 shares were repurchased on October 1, 2010. The weighted average number of shares outstanding during 2010 was: 565,000 2. Jackson, Inc. had 360,000 shares of common stock outstanding on January 1, 2010 and issued60,000 additional shares on July 1, 2010. There was no preferred stock. If net income for the yearended December 31, 2010 was $1,072,500, the earnings per share were: $2.75 3. Advance Systems, Inc. had 840,000 shares of common stock outstanding on January 1, 2010, and repurchased 75,000 shares on June 1, 2010. Net income for the year ended December 31, 2010, was $2,662,625, and preferred stock dividends for the year amounted to $35,000. The earnings per share for 2010 were: $3.30 4. Kaiser Corporation sold its Telecommunications Division during 2010. The company's accountants determined that the division earned $850,000 of pre-tax income during 2010 prior todisposal. The sale resulted in a $370,000 loss before taxes. Kaiser's income from continuing operations for 2010 amounted to $4,138,000. The company's effective tax rate is 35%. What is Kaiser Corporation's net income for 2010? $4,450,000 James Company had the following income statement for the year ended December 31, 2010:Net sales $600,000Costs and expensesCost of goods sold 400,000Selling, general, and administrative expenses 80,000Interest expense 5,000Income tax 35,00080,000Gain from discontinued operations 30,000110,000Unrealized loss on available for-sale-securities 8,000$102,000Chapter 17 Homework Problems5. The firm's operating income for 2010 was: $120,0006. The firm's net income for 2010 was: $110,000 7. The firm's income before income tax for 2010 was: $115,0008. The firm's comprehensive income for 2010 was: $102,0009. Bob Inc. has gross profit equal to $1,000,000. During the year Bob Inc. purchased $300,000 worth of inventory. The sales recorded during the year equaled $1,500,000. What is the value ofBob Inc.'s cost of goods sold? $ 500,00010. Which of the following items would be included in "other revenue" found on an income statement? sales gain from discontinued operationsinterest expenserent expensecost of goods soldgross profitgain from the sale of investmentsincome from operations interest income extraordinary gain 11. River Inc. had an extraordinary LOSS equal to $ 16,000 (before income tax). The net income for River Inc. equals $ 48,000. If the company’s tax rate was 25%, what was "income from continuing operations?" $60,000 12. Speed Inc. reported a net income equal to $15,000. The dividends declared & paid to the preferred shareholders equaled $ 5,000 and paid the common stockholders a dividend of $8,000. Speed Inc. had 10,000 shares of common stock outstanding all year long. What value is Speed Inc.'s earnings per share?