Income Statement Analysis for Apex Inc.
How did Apex Inc. perform in the recent year based on their income statement?
What was the income from continuing operations before income tax expense?
How much was the loss from discontinued operations?
What was the weighted average number of shares outstanding?
What was the applicable tax rate?
Income Statement Analysis for Apex Inc.
In the recent year, Apex Inc. reported an income from continuing operations before income tax expense of $450,000. They also incurred a loss from discontinued operations of $81,000. The weighted average number of shares outstanding was 30,000.
Apex Inc. had a successful performance in the recent year, generating a significant income from continuing operations before income tax expense. Despite the loss from discontinued operations, the company was able to maintain a strong financial position.
The weighted average number of shares outstanding shows the company's share structure and the number of shares that are included in the calculation of earnings per share.
The applicable tax rate of 40% indicates the portion of income that Apex Inc. is required to pay in taxes, affecting their overall net income.
Calculation Summary
The partial income statement for Apex Inc. would start with an income from continuing operations before tax of $450,000. After subtracting the income tax expense at 40%, the remaining income from continuing operations is $270,000. Adding the loss from discontinued operations of $81,000, the net income for the company is calculated to be $189,000.
Earnings Per Share (EPS)
The earnings per share (EPS) for Apex Inc. is determined by dividing the net income of $189,000 by the weighted average number of shares outstanding, which is 30,000. Therefore, the EPS for Apex Inc. in the recent year is $6.30.