<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>