Question

REMBRANDT PAINT COMPANY Income statement items, year ended 12/31/2021 ($ in thousands): Sales revenue Interest revenue Interest expense Cost of goods sold Advertising expense Salaries expense Depreciation expense Dividend income Restructuring costs Loss on selling equipment Loss from operations on plastics business Gain on disposal of the assets of plastics business Shares of common stock outstanding in 2021 Income tax rate 18000 100 300 10500 700 1200 600 200 800 200 1600 2000 500000 0.25

Complete the income statement.

Answer 1

Completion of Income statement:

REMBRANT PAINT COMPANY

Income Statement

for the year ended Dec 31, 2021

($ in thoudands, except per share amounts)

	($)	($)
Sales Revenue		18000
Cost of goods sold		10500
Gross profit		7500
Operating Expense:
Advertising expense	700
Salaries expense	1200
Depreciation expense	600
Restructuring costs	800
Total operating expenses		(3300)
Operating income		4200
Other Income (Expense):
Dividend income	200
Interest revenue	100
Interest expense	(300)
Loss on selling equipment	(200)
Other Income (net)		(200)
Income from continous operations before taxes		4000
Income tax expense (4000×0.25)		(1000)
Income from operations		3000
Discontinued operations:
Loss from operations on plastic business, net of taxes [1600 - (1600×0.25)]	(1200)
Gain on disposal of assets of plastic business, net of taxes [2000 - (2000×0.25)]	1500
Income from discontinued operations		300
NET INCOME		3300
Earnings per share:
Income from continuing operations (3000000/500000)		6
Income from discontinued operations (300000/500000)		0.6
Net income		6.6

______×_______

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