Rembrandt Paint Company had the following Income statement Items for the year en
ID: 2334239 • Letter: R
Question
Rembrandt Paint Company had the following Income statement Items for the year ended December 31, 2016 ($ In 000s): Net sales Interest Income Interest expense 14,500 3,300 1,600 Cost of goods sold Selling and administrative 280 expenses 510 Restructuring costs In addition, during the year the company completed the disposal of Its plastics buslness and Incurred a loss from operations of $2.4 mlon and a galn on disposal of the component's assets of $3.6 million. 600,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss). Requirec Prepare a multiple-step Income statement for 2016, Including EPS disclosures. (Amounts to be deducted should be Indicated wlth a minus sign. Enter your answers In thousands except earnings per share. Round EPS answers to 2 declmal places.) REMBRANDT PAINT COMPANY Income Statement For the Year Ended December 31, 2016 ($ in thousands, except per share amounts) Sales revenue Cost of goods sold Gross profit Operating expenses 26,000 14,500 11,500 3,300 Selling and administrative Restructuring costs 1.600 ncome 4,900 Discontinued operations 6,600 6,600 6,600 6,600 Earnings per shareExplanation / Answer
REMBRANDT PAINT COMPANY Income Statement For the Year Ended December 31, 2016 Sales revenue 26000 Cost of goods sold -14500 Gross profit 11500 Operating expenses: Selling and administrative -3300 Restructuring costs -1600 -4900 Operating income 6600 Interest income (expense), net -230 Income from continuing operations before income taxes 6370 Income tax expense -2548 Income from continuing operations 3822 Discontinued operations Income from operations of discontinued component 1200 Income tax expense -480 Income on discontinued operations 720 Net income 4542 Earnings per share: Income from continuing operations 6.37 Income on discontinued operations 1.2 Net income 7.57