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24 September, 12:47

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands) : Sales revenue $ 24,000 Cost of goods sold $ 13,500 Interest revenue 220 Selling and administrative expense 3,100 Interest expense 420 Restructuring costs 1,400 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.2 million and a gain on disposal of the component's assets of $3.2 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.)

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  1. 24 September, 13:54
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    Rembrandt Paint CompanyIncome Statement - December 31, 2021

    Sales revenues $24,000,000

    - Cost of goods sold ($13,500,000)

    Gross margin $10,500,000

    Operating expenses:

    - Selling and adm. expenses ($420,000)

    - Restructuring costs ($1,400,000)

    Total operating expenses ($1,820,000)

    Income from operations $8,620,000

    Other revenue and expenses:

    Gain on sales of assets $3,200,000

    Interest revenue $220,000

    Loss from discontinued oper. ($2,200,000)

    Interest expense ($420,000)

    Total other revenue and expenses $800,000

    Net income pre-tax $9,420,000

    Income taxes (25%) ($2,355,000)

    Net income after taxes $7,065,000

    Shares outstanding 600,000

    Earnings per share (EPS) $11.78
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