provides products and services to oil and natural gas exploration, production, transmission, and processing companies. The following is taken from a r
provides products and services to oil and natural gas exploration, production, transmission, and processing companies. The following is taken from a recent income statement. (Dollaramounts are in millions.)
\r\nSales revenue $2,697.0
\r\nService revenue 1,933.9
\r\nShare of earnings of unconsolidated affi liates 92.4
\r\nTotal revenues 4,723.3
\r\nCost of sales 1,722.7
\r\nCost of services 1,799.9
\r\nTotal costs of sales and services 3,522.6
\r\nGross earnings $1,200.7
\r\nSelling, engineering, administrative and general expenses (919.8)
\r\nSpecial charges (70.0)
\r\nOther income (deductions)
\r\nInterest expense (47.4)
\r\nInterest earned 19.1
\r\nOther, net 4.8
\r\nEarnings before income taxes and other items below 187.4
\r\nIncome taxes (79.4)
\r\nNoncontrolling interest (10.3)
\r\nEarnings from continuing operations 97.7
\r\nDiscontinued operations (35.3)
\r\nEarnings before extraordinary items 62.4
\r\nExtraordinary items (6.3)
\r\nNet earnings $ 56.1
\r\nInstructions
\r\nAssume that 177,636,000 shares of stock were issued and outstanding. Prepare the per share portion of the income statement. Remember to begin with “Earnings from continuing operations.”