976 - 734 = 242. It's a deficit.

Extraordinary items, as well as other nonoperating items, are reported on the income statement net of taxes. Operating income is not reported net of taxes, rather, it is reported as operating income before income taxes and the related income taxes expense is reported separately.

The stock split on December 31st would be restated for the entire year so that there would be 2,000,000 shares outstanding. 400,000 of them would represent the 200,000 issued on October 1st multiplied for the stock split. Since these shares were only outstanding for three months, they would be weighted by 3/12 X 400,000 = 100,000. The 800,000 shares outstanding since the beginning of the year would now be 1,600,000 shares due to the split. 1,600,000 + 100,000 = 1,700,000.

Cross-sectional data are data that describe characteristics of entities (such as persons, places, and companies) at a given moment in time. A balance sheet is just one example of cross sectional data. A census is also an example of cross-sectional data.

An increase in inventory would be added to the cost of goods sold reported in the income statement in calculating cash payments for inventory. An increase in inventory represents a cash outflow that is not yet reported as an expense on the income statement.