Question

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.)

Answer 1

Answer
Multiple Income Statement
Particular	Amount	Amount
Net Sales		$ 32,000
Cost Of Goods Sold		$ 17,500
Gross Profit		$14,500
Operating Expenses:
Selling And Administrative Expenses	$ 3,900
Restructuring Cost	$ 2,200
Total Operating Expense		$ 6,100
Operating Income		$ 8,400
Other Income (Expense)
Interest Revenue	$   380
Interest Expense	$ - 580
Other Income, Net		$ - 200
Income from continuing operations before income taxes		$ 8,200
less: Income Tax Expense @ 25		$   2,050
Income from continuing operations		$ 6,150
Discontinued Operations:
Income from operations of discontinued component	$ 1,800
less: Income Tax expenses @25%	$ - 450
Income from discontinued operations		$ 1,350
Net Income		$ 7,500
Earning Per Share:
Income From Continuing Operations		$ 10.25
Income From Discontinued Operations		$    2.25
Net Income Per Share		$ 12.50