Question

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

Sales revenue $ 25,000

Cost of goods sold $ 14,000

Selling and administrative expense 3,200

Interest expense 440

Dividend Revenue from investment 200

In addition,

1. the company incurred a Restructuring costs 1,500

2. During the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.4 million and a gain on disposal of the component’s assets of $3.4 million.

3. The company has unrealized gain from investment of $200

4. Negative foreign currency translation $600

Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss). 700,000 shares of common stock were outstanding throughout 2021.

Prepare the Statement of comprehensive income

Answer 1

Statement of comprehensive income For the year ended December 31,2021 Sales revenue $25000 Cost of goods sold $14000 Gross profit $11000 Operating expenses:- Selling expenses $3200 Restructing cost $1500 Total operating expenses $4700 Operating income $6300 Other income (expenses):- Interest expenses $(440) Dividend revenue $120 Other income (expenses) $(320) Income from continue operation before income tax $5980 Income tax expenses (40%) $2392 Income from continuing operations $3588 Discontinued operation :- Income from operation of discontinued component (3400-2400) $1000 Income tax expenses $(400) Income from discontinued operation $600 Net income $4188 Other comprehensive income (loss) Unrealized gain from investment,net of tax [200*(1-40%)] $120 Loss from foreign currency translation , net of tax [600*(1-40%)] $(360) Total other comprehensive income $(240) Comprehensive income $3948 Earning per share :- Income from continuing operation 5.13 Income from discontinued operation 0.86 Net income 5.99

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