Question

what is the value for net income for requirement 2

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021$ in thousandsy sales revenue $16. 300, cost of goods sold $6700, selling expenses $1,350, general and administrative expenses. $850, Interest revenue, $200, Interest expense $230 Income taxes have not yet been recorded. The company's income tax rate is 25% on all items of income or loss. These revenue and expense tems appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 20211$ in thousands) All transactions are material in amount = 1. Investments were sold during the year at a loss of $270 Schembri also had an unrealized gain of me in debt securities that quality as components of comprehensive income 2. One of the company's factores was closed during the year Restructuring costs incurred were $1700 3. During the year. Schembri completed the sale of one of its operating divisions that qualities as a component of the entity according to GAAP The division had incurred a loss from operations of $540 in 2021 prior to the sale, and its assets were sold at again of $1500 4. In 2021 the company's accountant discovered that depreciation expense in 2020 for the office building was understated by $250 5. Negative foreign currency translation adjustment for the year totaled $300 Required: 1. Prepare Schembra single, continuous multiple-step statement of comprehensive income for 2021, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400000 shares were issued on July 1, 2021 2. Prepare a separate statement of comprehensive income for 2021 Complete this question by entering your answers in the tabs below. Required Bewed 2 Prepare a separate statement of comprehensive income for 2021. (Amounts to be deducted should be indicated with a minus son Enter your answers in thousands.) SCHEMBRI MANUFACTURING CORPORATION State of comprehensive Income For the Year Ended December 31, 2021 Sin 000) Other comprehensive income, net ofta Foreign currency trannon aument Ganon de securities

Answer 1

As per asked The net Income is calculated in below

Statement Showing Multisteps Income Statement (amount in thousands)

Particulars		Amount ( $ in thousands)
Sales revenue		16300
Less Cost of Good Sold		-6700
Gross Profit		9600
Operating Expenses :
Selling Expenses	(a)1350
General & administrative expenses	(b)850
Total operating Expenses	a+b	2200
INCOME FROM OPERATIONS	Gross profit-operating Exp	7400
Non operating Income:
Interest  Revenues	200 (c)
Gain from selling of assets of schembri division	1500 (d)
Total Non Operating Income	c +d	1700
Non operating Expenses:
Interest expense	230
Loss from sale of Investment of securties	270
Restructing cost	1700
Total Non operating Expenses	(230+270+1700)	- 2200
Income From Continuing Operation	(7400+1700-2200)	6900
Profit (Loss) for the period from continuing operations Before Tax	6900
Loss from Discontinuing operations (before Tax)	-540
Net profit before Tax	(6900-540)	6360
Current Tax	@25% of 6360	-1590
Net Profit After Tax	(6360-1590)	4770
Earning per share	Net profit after tax / equity shares
	4770/ =1400***	3.407

***Opening shares in beginning of year = 1000000

addition during the year = 400000

closing Balance = 1400000

1400000 converted in thousands =1400000/1000

=1400

### UNDERSTATED DEPRECIATION WILL HAVE INCREASE RETAINED EARNINGS

so net income after Tax =$4770 thousands