Rembrandt Paint Company had the following income statement items
for the year ended December 31, 2021 ($ in thousands):
Sales revenue | $ | 29,000 | Cost of goods sold | $ | 16,000 |
Interest revenue | 320 | Selling and administrative expense | 3,600 | ||
Interest expense | 520 | Restructuring costs | 1,900 | ||
In addition, during the year the company completed the disposal of
its plastics business and incurred a loss from operations of $2.7
million and a gain on disposal of the component’s assets of $4.2
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.)
Rembrandt Paint Company | ||
Income Statement | ||
At December 31, 2021 | ||
Sales revenue | 29,000 | |
Cost of goods sold | -16,000 | |
Gross profit | 13,000 | |
Operating expenses: | ||
Selling and administrative expense | -3,600 | |
Total Operating expenses | -3,600 | |
Operating Profit | 9,400 | |
Other revenues and expenses: | ||
Interest revenue | 320 | |
Other expenses: | ||
Interest expense | -520 | |
Restructuring costs | -1,900 | |
Total other revenues and expenses | -2,100 | |
Income before taxes | 7,300 | |
Income tax ( Income before taxes x tax rate, 7,300 x 25%) | -1,825 | |
Income from continuing operations | 5,475 | |
Discontinued operations: | ||
Loss on operation of discontinued operations net of taxes {2,700- (2,700 x 25%)} | -2,025 | |
Gain on disposal of discontinued operations,net of taxes {4,200- 4,200 x 25%)} | 3,150 | |
Net Income | 6,600 | |
Earning per share ( Net Income / Number of common shares) (6,600,000/600,000) | $11.00 |
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Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021...
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