Question

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2018 ($ in 000s): Net Sales Interest income Interest expense $ 24,000 260 470 Cost of goods sold Selling and administrative expenses Restructuring costs $ 13,500 3,100 1.400 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.2 million and a gain on disposal of the component's assets of $3.2 million. 600,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss). Required: Prepare a multiple-step income statement for 2018, including EPS disclosures. (Any amounts to be deducted, including expenses 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

Answer:

REMBRANDT PAINT COMPANY Income statement for the year ended December 31 2018
sales		24000
less:cost of goods sold		(13500)
Gross margin		10500
less:selling and administrative expense	(3100)
Restructuring cost	(1400)	(4500)
Operating income		6000
other income /(expense)
Interest Income /(expense) [260-470]		(210)
Income from continuing operations before income tax		5790
less Income tax [ 5790*.40]		(2316)
Income from continuing operations after income tax		3474
Discontinued operations
loss from operations net of tax [-2,200 (1-.40)]	-1,320
Gain on disposal [3,200(1-.4) ]	1920
Income from discontinued operations		600
Net Income		4074
Earning per share
Income from continuing operations after income tax [3474/600]	$ 5.79
Income from discontinued operations [600/600]	1
Net Income	$ 6.79 per share