Question

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands):

Sales revenue	$	34,000	Cost of goods sold	$	18,500
Interest revenue		420	Selling and administrative expense		4,100
Interest expense		620	Restructuring costs		2,400

In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $3.2 million and a gain on disposal of the component’s assets of $5.2 million. 600,000 shares of common stock were outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25% on all items of income (loss).

Required:
Prepare a multiple-step income statement for 2021, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands except earnings per share. Round EPS answers to 2 decimal places.)

Answer 1

Multiple Income Statement-Rembrandt Pandit Company
Particular	Amount	Amount
Net Sales (a)		$34,000.00
Cost Of Goods Sold (b)		-$18,500.00
Gross Profit (a-b)		$15,500.00
Operating Expenses
Selling And Administrative Expenses	$4,100.00
Restructuring Cost	$2,400.00
Total Operating Expense		$6,500.00
Operating Income(15500-6500)		$9,000.00
Other Income(Expense)
Interest Revenue	$420.00
Interest Expense	-$620.00
Other Income (Net)		-$200.00
Income From Continuing Operations Before Income Taxes		$8,800.00
Income Tax Expense (8800*25%)		-$2,200.00
Income From Continuing Operations		$6,600.00
Discontinued Operations
Gain On Sale Of Investment (5200*75%)	$3,900.00
Loss From Operation Of Discontinued Component (32000*75%)	-$2,400.00
Income On Discontinued Operations		$1,500.00
Net Income		$8,100.00
Earning Per Share
Income From Continuing Operations [6600/600Shares]		$11.00
Income From Discontinued Operations [1500/600)		$2.50
Net Income		$13.50