For the year ended December 31, Global Exports had net sales of $7,750,000, costs and otherexpenses (including income tax) of $6,200,000, and an extraordinary gain (net of income tax) of$420,000.a. Prepare a condensed income statement (including earnings per share), assuming that 910,000 shares of common stock were outstanding throughout the year. (A condensed income state-ment is illustrated in Exhibit 12–2 .) b. Which earnings per share figure is used in computing the price-earnings ratio for GlobalExports reported in financial publications such as The Wall Street Journal? Explain briefly.

a) Prepare a projected income statement for the year to 31 October Year 8. b) Calculate for Year 7 and Year 8 i) Earnings per Share ii) Degree of operating gearing iii) Degree of financial gearing iv) Degree of combined gearing c) Briefly evaluate the information produced in a & b d) Calculate the sales revenue required in Year 8 to  maintain existing earnings per share

Presented below are the comparative income and retained eamings statements for Buffalo Inc. for the years 2020 and 2021. 2021 2020 Sales $314,000 $272,000 Cost of sales 200,000 147,000 Gross profit 114,000 125,000 Еxpenses 94,500 52,700 Net income $19,500 $72,300 Retained earnings (Jan. 1) $116,900 $70,700 Net income 19,500 72,300 Dividends (27,000 ) (26,100 ) Retained earnings (Dec. 31) $109,400 $116,900 The follawing additional information is provided: In 2021, Buffalo Inc. decided to switch its depreciation method from sum-of-the-years' digits to the straight-line method. The assets were purchased at the beginning of 2020 for $98,000 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $29,400 on the assets purchased at the beginning of 2020.) 1. In 2021, the company discovered that the ending inventory for 2020 was overstated by $24,100; ending inventory for 2021 is correctly stated. 2. Prepare the revised…

am. 62.