Chapter 11 Summary

 Major Categories  Operating Income Before Other Gains/Losses and Tax Expense  Income from Continuing Operations +/- Gains or Losses from:  Sale of Assets  Sale of Short Term Investments Taxes  Discontinued Operations Net of Tax  Cumulative Change in Accounting Procedure Net of Tax  Extraordinary Gain or Loss Unusual and Infrequent Net of Tax

 EPS = Net Income – Preferred Dividend Avg. # of common stock outstanding  Computed for:  Income from Continuing Operations All other sub-totals

 Tax Payable= Taxable Income x tax rate  Tax Expense = Net Income x tax rate  Deferred Taxes = Tax Expense – Tax Payable Tax Expense > Tax Payable = Liability Tax Expense < Tax Payable = Asset