Question

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

Problem 4-6 (Algo) Income statement presentation; Discontinued operations; EPS (L04-1, 4-3, 4-4, 4-5) Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands): Sales revenue Interest revenue Interest expense $ 32,000 380 580 Cost of goods sold Selling and administrative expense Restructuring costs $ 17,500 3,900 2,200 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $3 million and a gain on disposal of the component's assets of $4.8 million. 700,000 shares of common stock were outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25% on all items of income (loss). Required: Prepare a multiple-step income statement for 2021, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands except earnings per share. Round EPS answers to 2 decimal places.) REMBRANDT PAINT COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands, except per share amounts)

Answer 1

Answer
REMBRANDT PAINT COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in thousands, except per share amounts)
Sales revenue		$32,000
Cost of goods sold		-$17,500
Gross profit		$14,500
Operating expenses
Selling and administrative	$     3,900
Restructuring costs	$     2,200	$ 6,100
Operating Income		$ 8,400
Interet Income/(expenses) Net (380-580)		-$     200
Income from Continuing operations before income taxes and extraordinary item		$ 8,200
Income tax expense (25%)		$ 2,050
Income from Continuing operations before extraordinary item		$ 6,150
Discontinued Operations
Income from operations of discontinued components (4800-3000)	$     1,800
Income tax expense (25%)	$        450
Income from Discontinued operations		$ 1,350
Income before extraordinary items		$ 7,500
Extraordinary item		$        -
Net Income		$ 7,500
Earning per share
Income from Continuing operations before extraordinary item 6150 /700		8.79
Income from Discontinued operations 1350/700		1.93
Extraordinary item		0.00
Net Income		10.71