<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated balance sheets and the consolidated statements of operations and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000012659
<NAME> H&R BLOCK, INC. 
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          APR-30-1998
<PERIOD-START>                             MAY-01-1997
<PERIOD-END>                               JUL-31-1997
<CASH>                                          303920
<SECURITIES>                                     20269
<RECEIVABLES>                                   518739
<ALLOWANCES>                                     32198
<INVENTORY>                                          0
<CURRENT-ASSETS>                               1445155
<PP&E>                                           66082<F1>
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                                 1876362
<CURRENT-LIABILITIES>                           894614
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          4
<COMMON>                                          1089
<OTHER-SE>                                      940557
<TOTAL-LIABILITY-AND-EQUITY>                   1876362
<SALES>                                              0
<TOTAL-REVENUES>                                 43967
<CGS>                                                0
<TOTAL-COSTS>                                   104666
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                (55509)
<INCOME-TAX>                                   (20648)
<INCOME-CONTINUING>                            (34861)
<DISCONTINUED>                                  (3274)<F2>
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (38135)
<EPS-PRIMARY>                                    (.37)
<EPS-DILUTED>                                        0
<FN>
<F1>PP&E balance is net of accumulated depreciation and amortization.
<F2>Net of taxes on earnings of $1488.
</FN>