Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 38

Reporting Unusual Events: Using Predictive Subtotals
Pacific Airlines operated both an airline and several rental car operations located near airports.uring the year just ended, all rental car operations were discontinued and the following operating results were reported:

The extraordinary loss resulted from the destruction of an airliner by terrorists.acific Airlines had 4,000,000 shares of capital stock outstanding throughout the year.
Instructions
a.repare a condensed income statement, including proper presentation of the discontinued rental car operations and the extraordinary loss.nclude all appropriate earnings per share figures.

b.ssume that you expect the profitability of Pacific's airline operations to decline by 10 percent next year and the profitability of the rental car operation to decline by 10 percent.hat is your estimate of the company's net earnings per share next year