Question

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

Sales revenue	$	31,000	Cost of goods sold	$	17,000
Interest revenue		360	Selling and administrative expense		3,800
Interest expense		560	Restructuring costs		2,100

In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.9 million and a gain on disposal of the component’s assets of $4.6 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.)
  

REMBRANDT PAINT COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands, except per share amounts) Sales revenue $31,000 Cost of goods sold 17,000 Gross profit 14,000 Operating expenses: Selling and administrative expenses $3,800 Restructuring costs 2,100 5,900 Operating income 8,100 Other income (expense): Interest expense Other income, net 0 Income from continuing operations before income taxes 8,100 Income tax expense Income from continuing operations 8,100 Discontinued operations: Income from operations of discontinued component Income on discontinued operations 0 Net income $8,100 Earnings per share: Net income

Answer 1

Rembrandt Paint Company Income Statement For the Year Ended December 31, 2021. ($ in Thousands , Except per share amounts) Sales revenue Cost of goods sold Gross profit Operating expense: Selling & administrative $ 3,800,00 Restructuring cost $ 2,100.00 $ 31,000.00 $ 17,000.00 $ 14,000.00 $ $ 5,900.00 8,100.00 $ $ 360,00 560.00 Operating income Other Income (expense) Interest Revenue Interest Expense Other income (Net) Income from continuing operations before income tax Income tax expense Income from continuing operations Discontinued operations : Income from operations of discontinued component Income tax expense Income from discontinued operations Net income $ 200,00) $ 7,900.00 $ 1,975.00 $ 5,925.00 $ 1,700.00 $ 425.00 $ 1,275.00 $ 7,200.00 Earnings per share : Income from continuing operations Income from discontinued operations Net Income 9.88 2.13 12.00 $