Rembrandt Paint Company had the following income statement items for the year en
ID: 2335029 • Letter: R
Question
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2016 ($ in 000s): Net sales $ 32,000 Cost of goods sold $ 17,500 Interest income 340 Selling and administrative expenses 3,900 Interest expense 630 Restructuring costs 2,200 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $3.0 million and a gain on disposal of the component’s assets of $4.8 million. 700,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 30% 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.)
Explanation / Answer
REMBRANDT PAINT COMPANY Income Statement For the Year Ended December 31, 2016 Sales revenue 32000 Cost of goods sold -17500 Gross profit 14500 Operating expenses Selling and administrative -3900 Restructuring costs -2200 -6100 Operating income 8400 Interest income (expense), net -290 Income from continuing operations before income taxes 8110 Income tax expense -2433 Income from continuing operations 5677 Discontinued operations Income from operations of discontinued component 1800 Income tax expense -540 Income on discontinued operations 1260 Net income 6937 Earnings per share: Income from continuing operations 8.11 Income on discontinued operations 1.8 Net income 9.91