Question

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2016 ($ in 000s): Net sales $ 15,000 Interest income Interest expense $27,000 Cost of goods sold 290 Selling and administrative expenses 530 Restructuring costs 3,400 1,700 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.5 million and a gain on disposal of the component's assets of $3.8 million. 600,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss). Required: Prepare a multiple-step income statement for 2016, 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, 2016 < Prev 4 of 8 Next >

Answer 1

Ans: Minus are shown by way of bracket.

Ans: Amount Less Sales Revenue Cost of goods Sold : Gross Profit Selling & Administration Expenses Income from Operations Other Revenues & gain : Interest Revenue 27,000 (15,000) 12,000 (3,400) 8,600 Less Add 290 8,890 Less (530) (1,700) 6,660 (2,664) 3,996 Less Other Expenses Interest Expenses Goodwill written off Income from Continuing Operations before tax Income Tax Income from Continuing Operations Discontinued Operations : Loss of operations,net of tax Gain on Disposal,net of tax Income before Extraordinary Items Loss from flood Damage Net Income/(loss) No of Shares Earnings Per Share - Less B Add (1,500) 2,280 4,776 Less ,حمام 4,776 600 7.96